Shoe prices increased in March — in tandem with overall consumer retail prices — according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
Footwear prices rose 1.5 percent year-over-year last month, marking the sharpest increase in sixteen months. The increase was driven by a 4.6 percent growth in men’s footwear prices — the biggest leap in 20 months — in March. Compared to the prior year, women’s footwear prices sank 1.9 percent and children’s footwear prices rose 0.8 percent.
The higher prices on men’s footwear comes as the pattern of declining shoe duties moderates, chief economist at FDRA Gary Raines told FN.
“While these duties paid have declined year-over-year for several months, the rate of decline has moderated over recent months, buoying these recently higher retail prices,” Raines said. “If duties on men’s footwear imports begin to expand again, men’s retail prices may climb even faster, costing consumers and crimping retailers’ and importers’ margins.”
This latest rise in footwear prices comes as the Bureau of Labor Statistics reports that overall retail prices increased slightly in March from the previous month. Prices rose 0.4 percent in March from February, and 3.5 percent from the prior March. This marked the largest increase in six months. Excluding volatile food and energy costs, the core CPI rose 0.4 percent in March and 3.8 percent from the same month in 2023.
According to a survey from AlixPartners in partnership with FDRA published this week, consumers reported buying shoes more frequently, but at a lower price-point; 42 percent of respondents are more likely this year to search for coupons or wait for a sale over last year, due to higher prices and the pressures of inflation.
Matt Priest, president and chief executive officer of FDRA, said the report offers a “crucial real-time consumer snapshot” that shows inflation continues to impact behavior.
“I speak daily with shoe executives who are working to transform their merchandising strategies to address rapidly changing consumer demand,” Priest said. “We are seeing tighter margins across the industry than we have in some time — this is my main concern for our members coming out of this report.”
