Reducing Costs with Streamlined Collaboration Throughout the Real Estate Lifecycle
Genesco is a specialty retailer of footwear, apparel, and accessories in more than 1,500 retail stores and leased departments through the United States, Canada, the United Kingdom, the Republic of Ireland, and Germany. The Company’s brand names include Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy, Dockers Footwear, and more
Genesco lacked an organization-wide system for tracking and controlling lease management and accounting, as well as managing new store build projects and site selection documents. The lack of visibility caused disconnects among departments including Legal, Real Estate, Construction, Finance, and Lease Accounting. These information silos made for inefficient lease negotiations, contract approvals, and construction processes.
- A cumbersome manual process for calculating accruals and straight line rent
- Inefficient and ineffective control of equipment costs
- Lack of compliance with the FASB 842 lease accounting standard
Genesco implemented the Lucernex product suite to create a single information source, accessible across departments. The Company uses Lease Administration & Accounting capabilities to manage rent obligations and ensure FASB compliance for more than 3,500 real estate and equipment leases. Project Management capabilities enable centralized document access for new store construction projects, and use of Market Planning & Site Selection is streamlining the site selection approval process.
- Easy report generation increases visibility for negotiating better lease terms
- Automated calculation of rent obligations improves payment management
- LOI comparison tool maintains up-to-date records for greater team accountability
As a result of using Lucernex, Genesco has synergized workflows across departments, creating comprehensive end-to-end processes while improving collaboration throughout the store lifecycle. The company has maximized profitability through more efficient evaluation of potential risks and liabilities, and reduced risk of lease contract overpayment and missed deadlines.
- Approximately 20% reduction in time to sign new leases and legal contracts
- Comprehensive processes that ensure FASB/IASB compliance
- Improved dispute processes for better spend control
- Smoother site selection approval process with data compiled in one digital system
- Better-informed equipment lease decisions through centralized asset tracking