2017 Footwear Sales Didn’t Leave

Much of an Impression

 As reported in the Shoe Market 2017 Profiler, total retail

sales decreased 0.92% for the first half of the year. The
trend continued, as 2017’s total retail sales of $35.617
billion decreased 1.2% for the year, compared to 2016’s
total of $36.043 billion.

 Without the 2% increase in 2017 athletic footwear sales,

to $19.6 billion, total retail footwear sales for 2017
would have been further in the red. Unit sales of athletic
footwear also increased 2%, but the average selling
price was flat, at $58.16.

 Within the athletic footwear category, sales of women’s

shoes increased 5%, while men’s, the largest sector,
and children’s increased just 1% each. The sports
leisure sector was largely responsible, as its $9.6 billion
in sales was a 17% increase.
The Industry Found Its Stride
During the First Half of 2018

 2018 started quite stagnant for the US footwear market,

as February sales increased in the low single-digits,
although the sports lifestyle sector, the largest in athletic
footwear, continued to drive the market with a 16%
increase.

 For the year ending April 2018, The NPD Group

reported a 17% increase in dollars for the non-
performance, athletic-inspired sneaker sector. The
men’s market performed much better than during 2017,
increasing 10%, while women’s sales increased 33%.

 Then, during an August 2018 industry event, a

representative of The NPD Group stated total sales had
increased 4% year over year, including online sales,
which were primarily responsible, but branded stores
were also experiencing a resurgence.
Casual Athletic Footwear Leads
the Race

 Two factors appear to be driving the significant

increases in the sales of non-performance athletic, or
athleisure, footwear: the workplace becoming more
casual and women’s high heel sales decreasing 11%
during 2017.

 According to Coresight Research, the US athleisure

market will total almost $116 billion for 2018, with
footwear $37 billion of that total. By 2020, sports
footwear sales are forecast to increase 13%.

 Nike certainly understands these trends, as it will offer

more sizes in women’s sneakers and other expansions
for this market during 2018, which may be why its fiscal
4Q18 revenues were $9.79 billion, a 12.9% increase
from 4Q17.
Price and Special Offers
Attract More Footwear
Buyers Than Quality

 According to YouGuv’s report, The Face of Fashion,

unsurprisingly, “cheapest prices overall,” at 23%, was
the leading purchase motivators among footwear
consumers, with “best special offers,” second at 19%,
and “best quality products,” third, at 16%.

 A New Balance case study in the YouGuv report

revealed the brand now attracts more Millennials
instead of its traditional audience of middle-aged
fathers, as 13% of Millennials said they would
recommend New Balance compared to 12% of Gen
Xers.

 Interestingly, the largest group of consumers, or 33%,

responding to the questions about New Balance,
considered themselves politically conservative; 31%,
moderate; and 29%, liberal.
Online Footwear Purchases
Continue to Increase

 The Spring 2018 National Shoe Sales Survey from

Footwear Distributors and Retailers of America
(FDRA) confirmed the popularity of casual or
performance sneakers, as 70% of those who said
they would be purchasing shoes said they would buy
those styles.

 The report also found an increase in the percentage

of consumers who said they were planning to
purchase footwear online, from 23% during 2017 to
35% during 2018.

 The data is not particularly good for local, family-

owned shoe stores, as only 4% of those responding
to the survey said that is where they would be buying
footwear during spring 2018, compared to 17%
during 2017.
Advertising Strategies

 Local, family-owned shoe stores may be able to

increase their share of the market by promoting a
fashion coordinator in the store during a Saturday to
help women match their shoe selections with the latest
fashions and apparel for their age, lifestyle, etc.

 Another possible opportunity for local, family-owned

shoe stores is to feature special inventories at special
prices once a quarter to attract the larger percentages
of Latinx Americans and Asian Americans who are
willing to spend $100 to $250 for a pair of shoes.

 Another opportunity for local stores is to partner with

larger, local businesses that have allowed their
employees to dress more casually and provide a special
offer as an employee perk.
New Media Strategies

 With word-of-mouth (as it is for so many retail sectors)

having the greatest influence on footwear consumers,
retailers must use social media proactively to motivate
customers to share their purchases and in-store
perceptions with family members and friends.

 To help promote a fashion coordinator in the store (as

mentioned in the Advertising Strategies slide), create a
matching Pinterest page with a photo of the
coordinator, his or her comments about the latest
footwear fashions, etc.

 Post short videos on social media from a local

podiatrist showing people how to care for their feet, the
best methods for soothing tired feet at the end of a
long day and footwear-selection tips for children,
weekend athletes and those working in industrial
settings.