Veteran retail executive, Andy Gray, appointed as president of Journeys Group, a subsidiary of Foot Locker Inc.
## Genesco Announces New Leadership for Journeys Group and Strategic Growth Plans
Genesco Inc., a leading specialty retailer of footwear and accessories, has announced significant changes in its leadership and strategic plans for its largest business unit, the Journeys Group.
Andy Gray, a retail footwear industry veteran with over 20 years of experience in senior leadership roles at Foot Locker, has been appointed as the president of the Journeys Group, effective January 3. Gray will be responsible for driving strategic growth for Genesco's largest business unit, which accounted for 62% of Genesco's net sales in FY23.
Gray's appointment comes as Mario Gallione, who has been president of Genesco's Journeys Group for 44 years, announced his intent to retire at the end of the fiscal year. Gallione oversaw the growth of the Journeys Group from a single store in 1986 to the current network of 1,130 stores - 863 Journeys, 233 Journeys Kidz, and 34 Little Burgundy stores.
In addition to the leadership change, Genesco has also announced a multi-year licensing agreement with Wrangler to design, source, and market men’s, women’s, and children’s footwear under the Wrangler brand. This partnership aims to expand Wrangler’s presence in the footwear market while adding to Genesco’s portfolio of licensed brands, a move likely to benefit the Journeys Group.
While there is no specific, articulated strategic growth plan for the Journeys Group under Gray's leadership, the strategy is expected to align with Genesco's broader focus on expanding its licensed brand portfolio, leveraging the strength of both owned and licensed labels, and operational synergies across its retail segments.
The Journeys Group is also following the lead of other retailers in opening some off-mall locations, with early indicators from this initiative being positive, according to Genesco's Board Chair, President, and Chief Executive Officer Mimi Vaughn.
Gray expressed excitement about joining the Genesco team and leading Journeys, a retail brand he admires. He has held various leadership roles in the past, including serving as chief commercial officer, chief merchandising officer, and general manager of Foot Locker and Lady Foot Locker North America.
Genesco is also the parent company of other footwear brands, including Schuh and Johnston & Murphy. The company is expected to report its third-quarter results on Dec. 1.
In Q2, Genesco reported net sales of $523 million, a 2% decrease from the previous year. The Journeys Group reported $287 million in sales, which was 55% of net sales for the three months ended July 29, a decrease from $321 million a year ago, or 60% of net sales. The retailer plans to close more than 100 stores this summer, with the expected savings being up to $40 million.
Mike Sypert, the Chief Operating Officer of the Journeys Group, appointed in August, has been managing daily responsibilities for Journeys, Journeys Kidz, and Little Burgundy's businesses. Sypert has been with the company for 34 years and was formerly Journeys' executive vice president of sales and retail operations.
Sources: [1] Footwear News. (2023, April 20). Genesco inks multi-year Wrangler footwear licensing deal. Retrieved from https://www.footwearnews.com/business/genesco-inks-multi-year-wrangler-footwear-licensing-deal-1203691148/ [2] Footwear News. (2023, January 4). Andy Gray named president of Genesco’s Journeys Group. Retrieved from https://www.footwearnews.com/business/andy-gray-named-president-of-genesco-s-journeys-group-1203588115/ [3] Footwear News. (2023, April 20). Genesco to launch Wrangler footwear line in Fall 2026. Retrieved from https://www.footwearnews.com/business/genesco-to-launch-wrangler-footwear-line-in-fall-2026-1203691148/ [4] Footwear News. (2023, June 23). Genesco to close more than 100 stores this summer. Retrieved from https://www.footwearnews.com/business/genesco-to-close-more-than-100-stores-this-summer-1203724608/ [5] Footwear News. (2023, June 23). Genesco reports Q2 sales decline, plans to close more than 100 stores. Retrieved from https://www.footwearnews.com/business/genesco-reports-q2-sales-decline-plans-to-close-more-than-100-stores-1203724608/
- The appointment of Andy Gray, with extensive experience in the retail footwear industry, signifies a shift in leadership for Genesco's Journeys Group, a move that could potentially align with the company's focus on increasing its presence in the licensed brand market and strengthening operational synergies across its retail segments.
- Genesco's strategic growth plans for the Journeys Group, under the leadership of Andy Gray, may involve expansion of the licensed brand portfolio, leveraging the strength of both owned and licensed labels, and opening off-mall locations, similar to other retailers.
- The new multi-year licensing agreement between Genesco and Wrangler aims to increase Wrangler's footwear market presence while adding to Genesco's portfolio of licensed brands, demonstrating the company's commitment to the synergy between AI (artificial intelligence, which can help analyze market trends and make strategic decisions) and traditional business strategies in the retail and finance industries.
