Shoe Stores NAICS 458210

Mar 13, 2025 - Sales Fall Amid Consumer Pullback

• According to the Footwear Distributors and Retailers of America (FDRA) trade group, footwear sales dropped 26.2% for the week ending February 22, 2025, compared to the same week a year ago. Sales fell again in March, falling 10% for the week ending March 8, year over year. FDRA CEO Matt Priest said the decline is caused by caution due to tariff uncertainties. Per Priest, “This isn’t just a routine market shift—it’s a clear sign that rising inflation and the looming threat of new tariffs directly impact consumer behavior.” The Trump Administration has begun implementing a range of tariffs on China, Mexico, and Canada, as well as on products such as steel and aluminum. CNN reports that many footwear retailers have exposure to tariffs and will pass on some of the price increases to customers. Boot Barn, for example, sources approximately 55% of its goods from China, Canada, and Mexico.
• Consumer confidence and spending levels, indicators of shoe spending, fell due to consumer concerns about tariff effects, according to a report in CFO Dive. Consumer spending was down 0.5% in January 2025, according to the Bureau of Economic Analysis, as consumers reduced purchases of vehicles and other durable goods. All five components of the consumer sentiment index from the University of Michigan dropped in February, including a nearly 20% decrease in buying conditions for durable goods. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”

• 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 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.”