Shoe Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,300 shoe stores in the US sell most types of new footwear and related items. Major product categories include women’s footwear, men’s athletic footwear, women’s athletic footwear, and children’s athletic footwear. Shoe stores may also sell clothing and accessories, such as socks, belts, hosiery, and jewelry. The shoe store industry includes national chains, regional chains, franchises, and independent operators.
Managing Highly Seasonal Demand
The shoe business is highly seasonal and driven by the fashion calendar, which generally revolves around fall and spring collections.
Dependence On Foreign Sources
Imports account for about 98% of footwear sold in the US according to the American Apparel and Footwear Association (AAFA).
Industry size & Structure
The average shoe store employs fewer than 10 workers and generates $9.4 million annually.
- The shoe store industry consists of 4,300 companies that employ about 171,600 workers and generate $40.5 billion annually.
- The industry is concentrated; the top 50 companies account for 82% of industry revenue.
- The shoe store industry includes national chains, regional chains, franchises, and independent operators.
- Independent shoe retailers average two to four stores, employ seven workers per store, and carry an inventory worth $250,000 or more, according to National Shoe Retailers Association (NSRA) survey. The average per-pair price is $88.
- Large companies include Footlocker, Genesco (Journeys, Johnston & Murphy), Caleres (formerly Brown Shoe and parent of Famous Footwear) and DSW (Designer Shoe Warehouse). Large firms may have stores outside of the US or operate the shoe department within another retailer.
Industry Forecast
Shoe Stores Industry Growth
Recent Developments
Nov 12, 2024 - Retail Sector Expands, Inflation Down
- Economic activity in the services sector including the retail sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Producer inflation for shoe retailers fell 1.7% in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics. Employment levels and wages for shoe stores fell 2.3% and 8%, respectively, in September 2024 compared to a year ago. Average wages for nonsupervisory employees at shoe retailers were $22.40 per hour in September.
- Footwear manufacturer Steve Madden has announced it is significantly reducing its production in China, to adjust to the estimated impact of president-elect Donald Trump’s tariff proposals, according to CEO Today magazine. Trump has proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Steve Madden’s CEO Edward Rosenfeld said the company has been preparing for the potential scenario by creating a wider network of manufacturing partners since China currently accounts for about 70% of Steven Madden’s imports. The company said it expects to reduce its sourcing from China to between 40% to 45% by the end of 2025, in order to stay competitive in the shifting landscape of tariffs and international trade. Steven Madden has said it is looking to other countries with more favorable conditions for manufacturing and is not considering moving back to the US. Per Rosenfeld, “We are not considering bringing production back to the U.S. The costs just don’t make sense for us or the industry." According to a report from the National Retail Federation, the cost of a $50 pair of sneakers could increase from $59 to $64 if the proposed tariffs go into effect.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Footwear prices fell for the first time in a year in August 2024, declining 0.9% year over year, according to data from the Footwear Distributors and Retailers of America (FDRA) in Footwear News. Women’s shoe prices decreased 2.4% in August 2024 year over year, and prices for children’s shoes were down 2.6% during the same period. These declines offset an increase of 2.2% in men’s retail footwear. Year to date, overall retail footwear prices are up 0.7%, the same as the first eight months of 2023, according to Gary Raines, a chief economist at the FDRA, in the Footwear News report. By segment, men’s and women’s footwear prices were up 2.2% and 0.6%, respectively, year to date, while children’s footwear prices were down 1.4%.
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