Shoe prices experienced a slight increase in July, according to the latest data from the Footwear Distributors and Retailers of America (FDRA). Despite overall inflation slowing down, retail saw only a modest 1.0 percent year-over-year increase in prices. Men’s footwear prices rose by 2.2 percent, while women’s shoes saw a 1.1 percent increase. On the other hand, children’s shoe prices declined by 0.9 percent for the fifth consecutive month.
Gary Raines, the chief economist at FDRA, commented on the July numbers, stating that the slow increase in prices aligns with the organization’s previous predictions of a prolonged period for inflation to reach the Federal Reserve’s 2 percent target. He also mentioned that retail footwear prices are expected to see only modest changes throughout the year.
Raines further highlighted that retail footwear prices have only increased by 0.9 percent over the first seven months of 2024. Men’s and women’s footwear prices have risen by 2.2 percent and 1.1 percent, respectively, while children’s footwear prices have declined by 1.2 percent year-to-date. This marks the second time in fourteen years that children’s annual footwear prices are on track to decrease in 2024.
As children’s footwear prices decrease, families have more flexibility to consider other factors besides price when shopping for back-to-school shoes. The FDRA anticipates that revenue from back-to-school shoe sales will increase this year, even though unit sales may decrease. Matt Priest, the president and CEO of FDRA, noted that mothers are seeking better value for their money, leading to a „value-driven“ back-to-school season where price attracts customers, but value influences purchasing decisions.
The rise in footwear prices in July coincided with the Bureau of Labor Statistics reporting the smallest 12-month increase in overall retail prices since March 2021. The Consumer Price Index (CPI) increased by 0.2 percent on a seasonally adjusted basis in July, following a 0.1 percent decline in June. Prices were up by 2.9 percent over the last 12 months. Excluding volatile food and energy costs, the core CPI rose by 0.2 percent in July and 3.2 percent over the same period last year.
In conclusion, the slight increase in shoe prices in July reflects a broader trend of modest inflation in the retail sector. Despite the overall economic landscape, consumers are still willing to invest in quality footwear, particularly for back-to-school shopping. As the industry continues to navigate changing consumer preferences and economic conditions, it will be interesting to see how footwear prices evolve in the coming months.