Fresh Take:
Long-time Foot Locker executive, Andy Gray, appointed as President of Journeys Group
Andy Gray steps up as the new president of Genesco's Journeys Group, a role he'll take on starting January 3. He's replacing Mario Gallione, who's calling it quits after 44 years with the company. Gray brings a wealth of experience in the retail footwear industry, having spent the last 20 years in senior leadership roles at Foot Locker.
In a statement, Genesco's Board Chair, President, and CEO Mimi Vaughn expressed excitement about Gray's appointment, praising his expertise and passion for youth-focused businesses. One of Gray's main tasks will be driving strategic growth for Genesco's largest business unit, Journeys.
Gray himself is thrilled about the opportunity, expressing his enthusiasm for leading a brand he's long admired and seeing potential for growth in Journeys' unique market positioning. His previous roles at Foot Locker—including serving as the global president—have prepared him well for this new challenge.
Journeys offers footwear from popular brands like Converse, Vans, Adidas, and Dr. Martens. The mall-based retailer recently announced plans to close over 100 stores to save up to $40 million. Perhaps fueled by this decision, Journeys is also exploring off-mall locations, with early indicators pointing to positive results.
The Journeys Group accounted for 62% of Genesco's net sales in FY23, according to the latest proxy statement. The group caters to a demographic of 13-to 22-year-olds and currently operates 1,130 stores—863 Journeys, 233 Journeys Kidz, and 34 Little Burgundy stores. Most stores are located in malls or outlet centers.
Genesco also owns other footwear brands, such as the U.K. and Ireland-based Schuh and Johnston & Murphy. The company reported Q2 net sales of $523 million, down 2% from the previous year. Journeys Group reported sales of $287 million, accounting for nearly 55% of net sales for the quarter.
As for Gray's compensation, his annual base salary will be $635,000, with other benefits like a relocation bonus and the potential for company stock. Mike Sypert, who's been with the company for 34 years and served as executive vice president of sales and retail operations, will continue to manage the daily responsibilities for Journeys, Journeys Kidz, and Little Burgundy's businesses.
Insights:
Enrichment data suggests that, under Gray's leadership, Genesco's strategic plan for the Journeys Group includes a focus on marketing innovation and digital transformation to cater to Gen Z. Some specific initiatives include:
- Revamped Marketing Campaigns: Journeys plans to use TikTok and Gen Z creators to boost relevance among younger shoppers.
- Increased Investment in the Journeys Brand: The company is spending more on marketing, campaigns, and brand reinvention to appeal to contemporary youth culture.
- SEO & Digital Growth: Hiring specialists like an SEO Manager to optimize online presence and drive e-commerce traffic is a strategic priority.
- Digital Merchandising: A Digital Merchandiser role has been created to optimize product presentation and performance on digital platforms, supporting e-commerce growth.
These initiatives aim to position Journeys as a top choice for footwear and accessories among Gen Z and younger consumers, while ensuring growth in the highly competitive digital retail landscape.
- In his new role as president of Genesco's Journeys Group, Andy Gray aims to drive strategic growth, focusing on marketing innovation and digital transformation to cater to Gen Z.
- As part of this strategic plan, Journeys is revamping marketing campaigns, utilizing TikTok and Gen Z creators to boost relevance among younger shoppers.
- The company is investing more in the Journeys brand, spending on marketing, campaigns, and brand reinvention to appeal to contemporary youth culture.
- To optimize online presence and drive e-commerce traffic, Journeys is hiring SEO specialists.
- A Digital Merchandiser role has been created within the company to optimize product presentation and performance on digital platforms, supporting e-commerce growth.
- These initiatives are aimed at positioning Journeys as a top choice for footwear and accessories among Gen Z and younger consumers, while ensuring growth in the highly competitive digital retail landscape.
