Retailers Jumping for Joy According to US Census Bureau data, retail sales at shoe stores increased only 0.07% from 2014’s total of $33.531 billion to 2015’s $33.753 billion. Sales improved significantly, however, during the first half of 2016 by 4.0% from 2015’s $15.452 billion to $16.067 billion. The NPD Group reported during July 2016 that 2015 sales of dress and casual shoes increased 3%, but decreased 2% for June 2016; leisure shoes increased 4% and 8%, respectively; and performance shoes, increased 9% and 7%, respectively.

The Athletic Footwear Advantage According to data from The NPD Group, the US athletic footwear segment generated $17.2 billion in 2015 revenues, an 8% increase, with unit sales increasing 3% and the average selling price 5%, to $61.15. Classics was the leading category, increasing 30%, with retro basketball and retro running shoes responsible for much of the increase. Sales in this category increased 26% among men, 69% among women and 29% among children. The “performance run” continued into Q1 2016, with mid-single digit increases. Leading manufacturers were Skechers, with record Q1 2016 profits; Under Armour, with a 20% YOY sales increase; and Adidas, with a 22% sales increase.

Brands and Stores’ Q2 2016 Scores According to SportScanInfo data, total athletic shoe sales increased 14.6% for the week ending June 4, 2016, compared to the same week last year, with sandals, casual athletic and basketball shoes driving the increase. Under Armour’s athletic shoe revenues for the same week increased 125.2%; Nike, +8.6%; Skechers, +18.6%; and Adidas, +14.1%. Reebok’s revenues decreased 46.8%. For calendar Q2 2016, Foot Locker reported a 5% revenue increase in US sales; Adidas, a 25.6% increase in North American sales; Puma, a 5% increase in the Americas; and Nike, a 6% increase in the US.

Shopping for Shoes According to Body Labs 2016 Apparel & Footwear Retail Survey Report, 27% of surveyed consumers said they shop for footwear once a year, the highest percentage; followed by once every other month, 9%; a few times a month and once a month, both 5%. The April 2016 survey also found that 59% of apparel and footwear shoppers preferred to shop in-store versus online and primarily so they can touch, feel and try items, with 91% saying they were likely to try footwear in-store.   According to The NPD Group’s 2016 mid-year report, younger Millennials, 18–24, were responsible for 50% of footwear’s sales increase during the first half of 2016, with Generation Z, 14–17, responsible for 34%.

More Purchases with a Proper Fit The Body Labs survey also revealed that consumers returned 13% of in-store and 20% of online footwear purchases. The primary reason, at 57%, was a poor fit; followed by, change of mind, 12%; poor quality, 10%; and did not like style, 4%.   Of all consumers participating in the survey, 72% said they would buy at least one to two additional pairs of shoes during a single in-store or online transaction if they were assured of a proper fit. According to the survey, 64% of men and 80% of women would buy from one to more than 9 additional pairs of shoes if they were assured of a proper fit. For one to two additional purchases, men were 57% and women 70%.

Looking for an Online Deal cording to a new study from Hitwise, shoes and boots were consumers’ top searches online for a coupon, sale, discount or deal. The research also found that August was the #1 month for online shoe sale searches; November and December are first for boots.   45% of male footwear shoppers and 36% of female footwear shoppers only shop in stores; 16% and 14%, shop online the same as in store; 12% and 19%, shop more online than in-store; and 4% and 3%, shop only online, respectively. 45% of male footwear shoppers shop online for shoes a few times a year and 38% once a year. Among female footwear shoppers, 52% shop online for shoes a few times a year and 16% once a year.

Advertising Strategies With Latino Americans representing a significant percentage of sporting goods shoppers and many of their purchases likely to be athletic shoes, shoe stores can attract some of these shoppers with a Spanish call-to-action in their TV spots, and other advertising. According to the National Shoe Retailers Association, independent shoe stores are better positioned than many chains to generate more loyalty with higher levels of customer service and shopping experiences, and should highlights these differences in their advertising.   Because a proper fit correlates to additional shoe purchases, shoe stores can run a “Good Fit, Better Deal” promotion, offering customers who are satisfied with the fit of their first purchase qualify for a special price or discount for the purchase of a second pair.

New Media Strategies Stores can maximize impulse visits and purchases by creating a comprehensive customer database that includes email addresses and implement monthly email campaigns that feature one or more specially priced items just for that day or week. With younger Millennials, 18–24, responsible for 50% of footwear’s sale increase during the first half of 2016, shoe stores must provide an easy-to-research mobile experience, which is more likely to compel Millennials to visit their stores. Collect mobile phone numbers as part of a comprehensive customer database and send a text with a two-hour deal during the lunch hour to attract workers and/or a different text directed at Millennials during early evening for a “closing hour” deal.