Shoe Stores NAICS 458210

Nov 11, 2025 - Footwear Sales Up in Q3

• 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.
• The Retail Trade Industry is one of 11 industries reporting growth in October's Services ISM Report on Business. Executives in the Retail Trade industry reported increases in business activity, new orders, employment, prices paid for materials and services, and order backlogs, along with decreases in new export orders, imports, and inventories in October. Additional industries reporting growth during the period were Accommodation & Food Services; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Six industries reported contraction during the period, including Arts, Entertainment & Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; Construction; and Other Services. Overall, economic activity in the services sector expanded in October, with the Services PMI registering 52.4%.

• Softening consumer sentiment and confidence in November and October 2025 reflects a growing weakness in discretionary spending, posing challenges for shoe retailers. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates. Holiday spending is projected to fall, with promotions driving purchasing decisions.
• 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.