2. Business Takes a Tumble
Retail shoe store sales decreased 0.92% from $ billion during the first half of 2016 to $ billion for the same period during 2017.
Footwear sales in the U.S. decreased 1% to $65 billion for the 12-month period ending February A Footwear Distributors & Retailers of America (FDRA) report said footwear prices decreased during February 2017: men’s -1.5% and women’s - 0.3%.
U.S. shoe sales decreased during the first half of 2017 compared to the same period in Fashion footwear decreased 11%, and leisure shoe sales increased 24%. Women’s shoes decreased 7%, while men’s and children’s increased 8% and 16%, respectively.

3. Athletic Footwear Can’t Keep Pace
Athletic shoe sales had been a bright spot in the overall footwear market thanks to the athleisure trend, but those sales are now slowing. Men’s and kids’ athletic shoe sales decreased approximately 5% and women’s increased approximately 2% during Q
Casual athletic was the leading category, increasing nearly 50% for Q2. Classics’ sales decreased in the low teens. Basketball shoes sales decreased in the high teens and running shoes also lagged, with decreases in the high, single digits.
Leading manufacturers during Q were Adidas and Puma, while Nike, Brand Jordan, Converse and Under Armour all experienced decreases in sales.

4. Shoe Retailers Running Scared
According to Footwear News, Foot Locker sales decreased 4.4% during Q Foot Locker announced it planned to close more than the previously announced 100 stores during Profits for the quarter decreased 60% YOY to $51 million.
Designer Shoe Warehouse’s (DSW) Q sales increased 3.3% to $680.4 million. It credited the good results to an increase in women’s shoe sales as well as its expansion into children’s shoes and a larger athletic shoe section.
Payless Shoes entered bankruptcy during April 2017, and plans to close 800 stores, a reduction of its retail footprint by 20%.

5. Fitting Many Consumer Categories
Latino-Americans accounted for 23% of athletic footwear sales during 2016, generating most of the growth in that category. During the first half of 2017, however, sneaker sales to Latino- Americans decreased in the high teens, as immigrants saved more.
According to Prosper’s 2017 Apparel and Footwear survey, when shopping for footwear in-store, 32% of consumers said they shopped most often in specialty stores, followed by department stores (20%) and discount stores (17%).
According to The NPD Group, Millennials and Gen Zers are both early adopters and Gen Z wants to be unique, which is driving smaller brands and new products, including footwear across categories, such as athleisure and sneaker/boots. Comfort is key.

6. Amazon Steps on the Toes of Brick-and-Mortar Retailers
As in many other categories, Amazon’s shoe sales increased faster (+35% YOY) during 2016 than overall industry sales (+5% YOY).
Adidas’ Women’s Superstar Foundation Casual Sneaker has featured in 5 of Amazon’s top-6 fastest growing items, increasing from 480% to 890%. Nike closed a deal during June 2017 to sell some products on Amazon, which could hurt sporting goods retailers.
Although consumers still prefer to buy shoes in-store, that gap is closing. Ecommerce stores offer customization driven by Millennials and reduce returns with fitting technologies like True Fit and Fitcode.

7. Advertising Strategies
To appeal to younger consumers, stores can emphasize unique styles with a curated approach.
Feature more crossover shoes that blend comfort, versatility and style.
To attract runners and other athletes, sponsor local sporting events, such as 5Ks and triathlons, and host pre-event parties in–store.

8. New Media Strategies
Strengthen omnichannel strategies, so consumers can choose styles online and be able to try them at the local store to ensure a good fit.
Collect data on shoe purchases through a loyalty program/CRM system, and use it to send mobile promotions proactively to customers based on their specific past purchases. This mimics Amazon’s “You-May-Also-Like” product suggestions.
Increase customer satisfaction with in-store tech, so sales associates can communicate instantly with staff in the back room and quickly retrieve requested styles and sizes. Provide e-receipts, as a customer convenience, and to personalize the store’s CRM database.