Footwear prices saw a slight increase in July, according to data from the Footwear Distributors and Retailers of America (FDRA). Retail footwear prices rose by just 1.0 percent year-over-year, with men’s footwear prices increasing by 2.2 percent and women’s shoes rising by 1.1 percent. However, children’s shoe prices experienced a decline of 0.9 percent for the fifth consecutive month.
Gary Raines, chief economist at FDRA, noted that these modest price increases indicate that overall inflation is slowing down. He mentioned that retail footwear prices have only seen a 0.9 percent increase over the first seven months of 2024, with men’s and women’s footwear prices overshadowing the decline in children’s footwear prices.
Raines also highlighted that children’s annual footwear prices are on track to decline in 2024 for only the second time in the last fourteen years. This trend allows families to focus on shoe attributes other than price when shopping for back-to-school, as noted by Circana. Despite a potential decrease in unit sales, the FDRA expects revenue from back-to-school shoe sales to increase this year.
Matt Priest, president and CEO of FDRA, mentioned that moms are looking for better value when shopping for back-to-school shoes. This shift towards value-driven purchases may lead to an increase in revenue despite a potential decrease in unit sales.
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, with prices up by 2.9 percent over the last 12 months. Excluding food and energy costs, the core CPI rose by 0.2 percent in July and increased by 3.2 percent compared to the previous year.
In conclusion, the slight increase in footwear prices in July reflects a broader trend of slowing inflation. Despite this, the FDRA expects back-to-school shoe sales to increase this year, driven by a focus on value-driven purchases. Families now have the opportunity to prioritize shoe attributes other than price when shopping for footwear, signaling a shift in consumer behavior within the industry.