Shoe Stores NAICS 458210

Sep 10, 2025 - Footwear Sales Slip in First Half of 2025: Circana

• The US footwear industry saw footwear dollar sales down 1% in the first half of 2025 year over year, according to Circana’s Retail Tracking Service reported by Footwear News. Unit sales declined 2% and average selling price rose 2% in the first half of 2025 compared to the same period a year ago. Declines were primarily driven by the fashion and outdoor footwear categories, while the sport lifestyle and performance categories grew in dollars, units, and price. Sport lifestyle, or athleisure sneakers, grew 3% in the first half of the year and remained the largest footwear segment. The performance footwear category saw dollar sales for running and cross training up 7% and 9%, respectively. According to Beth Goldstein, footwear and accessories advisor at Circana, “Sneakers are driving much of the growth, along with a handful of fashion styles that offer both newness and versatility.”
• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old, while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.2 in August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The Footwear Distributors and Retailers of America (FDRA) released the results of its Q2 2025 Shoe Executive Business Survey, which shows growing concerns among industry leaders over weakening consumer demand, higher costs, and unpredictable tariff policies. The survey showed a significant downturn in industry confidence, with 82% of respondents expecting a weaker US economy over the next six months, 88% foreseeing less demand from footwear shoppers, and 49% expecting lower comparable store sales in the next six months. Executives expect to see a jump in landed costs in the second half of the year, with 60% anticipating double-digit increases. Consumers will feel the effects as well, with 75% of footwear executives anticipating retail prices to grow by more than 5%. Leaders say they will trim costs during the remainder of the year, by curbing capital expenditures, cutting hiring, and reducing operating costs.
• According to a recent report in the Wall Street Journal, retailers are cutting back on free shipping to offset tariff costs. Some retailers are eliminating free shipping while others are raising the amount that customers must spend to quality for free shipping, as a way to pass along higher costs to consumers. Retail-technology provider Narvar noted that the average minimum-order threshold for retailers to offer free shipping has increased from $82 in 2023 to $103 in 2025. Adjusting the shipping price is appealing to retailers since it does not change the front-facing shopping price to consumers, per Narvar CEO Anisa Kumar.