By Bob McGee. Parent company Genesco has invested in expanding and upgrading retailer Journeys’ distribution center over the last year. Noteworthy among the changes is the addition of a customized module for e-commerce picking, to increase delivery speed to consumers, enhance efficiency and lower costs. The result: An estimated 65 percent of all web and store orders have been shipped by Journeys’ DC during the first nine months of 2018 versus 55 percent in the same year-ago period.
“Shipping directly from the DC is the most efficient way to process e-commerce orders and it allows us to a keep a stronger inventory position in our small footprint stores…while also freeing up our store people to focus on selling instead of packing up orders to ship,” Genesco President and CEO Bob Dennis told analysts earlier this month.
Additionally, the 1,219-store Journeys is nearing the completion of a network upgrade that will enhance speed during the checkout process and web searches for product. With the announced divestiture of the Lids Sports Group, Genesco is focusing solely on its footwear business going forward.
Journeys posted solid gains in Q3, generating a 9 percent comp increase and double-digit improvement from e-commerce orders. The retail chain benefitted from its diverse assortment of fashion, athletic and casual styles, and got an added boost from boot sales after Back-to-School. After a positive November, Genesco CFO Mimi Vaughn says the company is more optimistic about the banner’s Q4 comps despite a difficult comparison. The company also sees upside for its Journeys Kidz concept, currently at 184 locations.