Genesco to Overhaul Operational Tech, Ramp up AI, Expects Job Cuts

Journeys parent company Genesco is set to transform its information technology operating model in a move aimed at supporting the company’s long-term growth strategy.

Mimi Vaughn, board chair, president and chief executive officer at Genesco, said in a statement on Thursday that the move comes after a “comprehensive review” of its IT operations.

“This transformation builds on the meaningful investments and progress we have made in digital and omnichannel and enables us to more effectively leverage advanced technologies,” Vaughn noted. “By aligning our resources to a next-generation model, we are enhancing our ability to serve customers, increasing speed and flexibility across the organization, and supporting the company’s continued growth.”

Genesco is partnering with a leading global technology provider and adopting new tools and ways of working. Other areas in focus include “advancing to a new business model designed to improve speed and scalability, accelerating AI-enabled innovation and automation, and more closely aligning technology capabilities with the company’s evolving business priorities,” Genesco said.

The company expects full transformation to be implemented in phases over the next 12 to 18 months. Along with the transformation, Genesco expects that some positions will be impacted within its IT organization.

When contacted by FN, a Genesco representative stated that the company does not have any further details to disclose on the number of potential job impacts at this time, but that it is “committed to supporting affected team members through the transition.”

The news comes after Genesco disclosed that comparable sales, including both stores and direct sales, increased 9 percent for the fourth quarter-to-date period ended Dec. 27.

Revealed just ahead of the company’s presentation at this week’s ICR Conference, Genesco also said that same store sales increased 10 percent and comparable sales for the company’s e-commerce businesses increased 9 percent for that period.

By brand, comparable sales for the eight weeks versus the same year-ago quarter saw its Journeys Group gain 12 percent. The Schuh Group rose 6 percent and the Johnston & Murphy Group was up 1 percent.

“We were very pleased with our holiday performance as compelling assortments and exceptional execution by our teams drove strong conversion and full price selling at Journeys throughout December,” Vaughn said in a statement on Monday. “Journeys delivered a double-digit comparable increase as sales ramped up in December on top of a double-digit increase last year, reflecting our ability to execute during peak demand periods.”