The narrative that malls are dying isn’t entirely accurate, but retailers are still closing stores as shopping habits evolve, leading to a growing gap between successful and struggling businesses. Store closures are no longer solely a sign of retail weakness; they are increasingly a strategic decision about which malls are worth investing in and which are no longer sustainable.
According to Placer.ai’s March 2026 Mall Index, traffic to malls increased in the first quarter of the year across various formats like indoor malls, open-air shopping centers, and outlet malls. This growth can be attributed to strong performances in the initial months of the year.
However, the state of malls is more complex than just an increase in foot traffic. The American mall is not dying; rather, it is evolving. Premier shopping centers with luxury brands and unique experiences are thriving, while lower-tier properties are struggling to survive, as noted by Coldwell Banker Commercial.
Smart retailers understand this dynamic and are making tough decisions about their store locations. Genesco, the parent company of Journeys, a popular mall-based sneaker and footwear retailer, has been closing stores as part of a larger strategy to adapt to changing consumer behavior.
Since late 2023, Genesco has been shifting its store presence, particularly for Journeys, away from malls. The company closed 94 Journeys stores in Fiscal 2024 and plans to shut down up to 50 more in Fiscal 2025, according to their 2024 earnings release. Genesco CEO Mimi Vaughn described the situation at Journeys as a turnaround and expressed confidence in the brand’s potential for growth.
Despite these store closures, Journeys has shown positive growth and performance in recent years. Comps increased by 6% in fiscal year 2025 and 9% in fiscal year 2026, as reported during Genesco’s fourth-quarter 2026 earnings call. Investing.com highlighted that Journeys played a significant role in Genesco’s strong quarter, with robust sales growth and momentum.
The trend of moving stores out of struggling malls is not unique to Genesco. Luxury retailers in the U.S. have been increasing their square footage, aiming to attract affluent shoppers who prioritize quality and experience. This shift in retail strategy reflects a broader change in consumer behavior, as noted by McKinsey’s State of Fashion 2026 report.
Neil Saunders, Managing Director at GlobalData, predicts that consumers will become more selective about where they shop and what they buy, leading to a divide between successful and failing retail properties. Coldwell Banker emphasized the need for lower-tier malls to reposition themselves towards premium experiences or consider alternative uses to remain viable in the changing retail landscape.
In conclusion, the retail sector is experiencing a transformation, with winners and losers emerging as shopping habits evolve. By understanding and adapting to these changes, retailers can position themselves for success in a shifting market landscape.
