Shoe Stores NAICS 458210

Jan 13, 2026 - US Footwear Executives Brace for Higher Import Costs in 2026

• The Footwear Distributors and Retailers of America (FDRA) Q4 2025 Shoe Executive Business Survey signals rising concern across the US footwear industry as companies head into 2026. Executives broadly expect import and landed footwear costs to increase materially next year, driven by tariffs that have not yet fully flowed through supply chains, higher logistics expenses, and trade policy uncertainty. Many respondents noted that tariff impacts are only beginning to be felt, suggesting additional cost pressure ahead. With inflation still shaping consumer behavior, companies have relied on front-loading inventory to manage risk, but that strategy has now ended, raising concerns about pricing sustainability in early 2026. Survey feedback also points to softening consumer demand, particularly in the family footwear channel, and expectations of a challenging first half, with market contraction favoring stronger manufacturers and retailers over weaker competitors.
• Consumer sentiment in December 2025 signaled a cautious spending environment for the US retail sector. The Conference Board's Consumer Confidence Index fell to 89.1, in December with the Present Situation Index down 9.5 points and expectations holding at a recession associated 70.7. Consumers continue shifting spending toward essential, lower cost categories. For US retailers, the indicator points to ongoing pressure on discretionary spending, softer demand for big ticket items, and continued strength in value oriented and necessity driven segments. Retailers may face a slow growth environment as consumers prioritize affordability and delay nonessential purchases.

• The US footwear industry saw footwear dollar sales rise 3% in Q3 2025 year over year, according to Circana’s Retail Tracking Service reported by Footwear News. Unit sales declined 1% and average selling price rose 4% in Q3 2025 compared to the same period a year ago. Sport lifestyle, or athleisure sneakers, grew 5% in Q3 and remained the largest footwear segment, while the fashion category posted improvement over Q2 but experienced a small decline. The performance footwear category saw dollar and unit sales up for running and walking segments in Q3. Looking ahead, Circana's holiday purchase intentions study showed that 56% of respondents plan to purchase clothing, accessories, and footwear this season, with an average planned spend across the categories of $490.
• While five services industries reported contraction in December, 11 industries reported growth, including the Retail Trade industry, according to an ISM Services PMI Report. Executives in the Retail Trade industry reported increases in business activity, new orders, employment, prices paid for materials and services, and inventories, along with decreases in new export orders, imports, and order backlogs in December. Other industries reporting growth during the period were Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Health Care & Social Assistance; Information; Wholesale Trade; Public Administration; and Utilities. Agriculture, Forestry, Fishing & Hunting; Information; Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.