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
Jan 13, 2025 - Inflation Falls, Employment Down
- Producer inflation for shoe retailers fell 4.8% in November 2024 compared to a year ago, according to the US Bureau of Labor Statistics. Employment levels and wages for shoe stores fell 5.2% and 9.5%, respectively, in October 2024 compared to a year ago. Average wages for nonsupervisory employees at shoe retailers were $22.05 per hour in October. In December 2024, economic activity in the services sector expanded for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
- According to Retail Dive, Foot Locker is planning to shutter about 400 mall-based stores in the next two years as part of a turnaround strategy. The company is investing in its digital business, which accounts for a fifth of sales, including a recent upgrade of its mobile app. Foot Locker is also investing in its new store concepts, which will be more immersive and be informed by customer data. Foot Locker is also looking to refresh its current locations with better merchandising, branding, and fixtures, with plans to convert two-thirds of its fleet to an updated format by the end of 2025. Foot Locker lowered its full-year guidance for 2024 following a challenging year marked by weaker consumer spending. The company is not alone in shrinking its footprint; UBS analysts forecast that about 45,000 retail stores may close in upcoming years.
- According to Footwear News, more American footwear brands are considering finding a supply chain location closer to home amid the threat by President-elect Donald Trump’s administration of new tariffs. Manufacturers in the US told Footwear News that they have seen more brands looking for factory partners on US soil to avoid tariff issues. Trump has announced tariff plans of 10% to 20% on imports from all foreign countries and a 60% to 100% tariff on imports from China. About 99% of the shoes sold in the US are currently imported from China, Vietnam, and Indonesia, and tariffs in these regions could significantly increase footwear costs. Some US manufacturers had already been adjusting their supply chains to bring manufacturing locations closer to home following the supply chain meltdown during the pandemic. Hilos, which offers a US-based manufacturing solution for footwear manufacturers and recently partnered with Steve Madden to reduce its foreign production, noted that the upcoming 2028 Olympics based in Los Angeles and the 2026 US bicentennial have also driven demand among brands for “Made in the U.S.A” products. Elias Stahl, CEO of Hilos, said footwear made in the US uses new technologies and a different approach than overseas factories due in part to the fact that the US lacks the level of skilled shoe industry workers needed to assemble shoes. Per Stahl, “The way that footwear is made overseas — 65 parts assembled in 150 steps — is not viable in the U.S., nor is it necessarily something we want to bring back.”
- 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.
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