Shoe Carnival is reversing course on its plan to convert most of its stores to the Shoe Station banner, saying the two brands serve different customer bases and will remain separate parts of the company’s portfolio.
The retailer said during its first-quarter earnings call that it is no longer pursuing a single-banner strategy, walking back previous plans to convert more than 90% of its store fleet into Shoe Station locations.
The decision followed a review of the strategy during the first quarter, according to interim president and CEO Cliff Sifford.
“We determined that Shoe Carnival and Shoe Station each serve distinct consumer segments,” Sifford said, adding that the company is positioned to operate both banners as “permanent, independent components of our portfolio.”
The strategy shift came as the retailer posted weaker quarterly results. Net sales fell 2.5% to nearly $271 million, while the company swung from a year-ago profit to a net loss of $5.6 million.
As part of the previous conversion strategy, Shoe Carnival had rolled out a standardized Shoe Station assortment across converted stores over the past two years.
According to Sifford, the approach performed well in markets aligned with the Shoe Station customer base, but failed to resonate in others.
The company is now adjusting merchandise assortments at converted stores to better fit local markets.
“The plan from here is straightforward,” Sifford said. “We will restore the right product mix that delivers competitive opening price points our customer expects. We will pair that assortment with a measured in-store promotional cadence and supporting marketing presence. We’ll execute consistently across the chain.”
Shoe Carnival also said it plans to close 12 to 14 stores in 2026, followed by another six to 10 locations in 2027.
The retailer is also working to reconnect with value-oriented and fast-fashion shoppers, whom Sifford said were underserved in 2025 as the company emphasized higher-priced assortments that “did not reflect what those customers historically came to Shoe Carnival to find.”
Sifford returned to lead the company on an interim basis in February after the sudden departure of former CEO Mark Worden, who had championed the rebanner initiative and previously described Shoe Station as the “future of our store base.”
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