Dive Brief:
- Shoe Carnival’s board voted unanimously to change its corporate name to Shoe Station Group, according to a Thursday filing with the U.S. Securities and Exchange Commission.
- The change is subject to a shareholder vote set for June 2026.
- The retailer expects over 90% of its fleet to operate as Shoe Station stores by the end of fiscal 2028. The banner consolidation is expected to generate $20 million in annual cost savings.
Dive Insight:
Shoe Carnival is making good on its promise to make Shoe Station its future.
The company began tests in fall 2024 to rebanner some of its namesake stores to Shoe Station locations. The results were overwhelmingly positive, so the company began accelerating the strategy.
“It is crystal clear that Shoe Station is the future of our organic growth and future of our store base,” Shoe Carnival CEO Mark Worden said in June.
The company has completed 100 store rebanners this year, and is currently on pace for 51% of its store fleet to operate as Shoe Station locations by the back-to-school season in 2026. It will evaluate remaining locations for outlet repositioning, rebannering or closure.
The consolidation will result in tens of millions in annual savings and a 20% to 25% reduction in inventory investment by the end of fiscal 2027. Annual comparable sales growth is forecast to start in fiscal 2027 as Shoe Station becomes the dominant banner.
“Shoe Station is winning — growing comps, expanding margins and capturing new customers,” Worden said. “The Board of Directors’ decision to approve the corporate name change to Shoe Station Group reflects our confidence in this banner’s potential and establishes our foundation for becoming the nation’s leading family footwear retailer.”
Along with the branding announcement, the retailer also released preliminary third quarter results, with net sales coming in at $297.2 million. Shoe Station net sales grew 5.3% year over year for the quarter, while Shoe Carnival net sales declined 5.2% “reflecting continued pressure on lower-income consumers,” according to the company.
Shoe Carnival acquired family-owned Shoe Station for $67 million in 2021.