US Footwear Industry Expects Weaker Sales Ahead

The footwear industry, seen as a bellwether for US consumption, is pulling back on hiring and investment amid predictions of a sales slowdown.

A survey from the Footwear Distributors & Retailers of America, a trade group that represents nearly 500 US shoe retailers and brands, including Walmart Inc., Nike Inc. and Allbirds Inc., found that 87 percent of companies expect weaker sales in the next six months. They also predict operating costs will continue to climb.

In a phone interview, FDRA Chief Executive Officer Matt Priest said the results were “dramatic” and “concerning” as inflation leapfrogs supply-chain snarls as the top concern among retailers.

Shoes are a key barometer of economic health since they’re a necessary good that consumers repeatedly buy, Priest said. The survey results follow darker forecasts from retailers such as Target Corp. and Kohl’s Corp., which lowered profit expectations on high operating costs, bloated inventories and changes in demand.

A recession is generally defined as two consecutive quarterly declines in gross domestic product. Priest said the footwear industry could be providing an early glimpse at broader economic performance.

“Because our economy is mainly driven by consumption, we see the impact of a slowing economy before the numbers are official,” he said.

The US economy shrank at an annual rate of 1.6 percent in the first quarter, according to the Commerce Department.

In this environment, two thirds of executives say they see new hires decreasing or staying flat — a reversal from the group’s last survey released in March, when two thirds said they were boosting staffing. A majority are also reducing capital expenditure or keeping it flat — another abrupt shift from the previous study, when a majority planned higher investment.

There’s some good news for bargain hunters, however. Nearly half of respondents said they expect to see more discounts over the next six months. That compares with 80 percent in the previous survey expecting high prices to persist.

By Allison Nicole Smith

Learn more:

What Will a Recession Mean for the Luxury Market?

An impending economic downturn is top of mind for the sector right now. BoF breaks down the key implications for the industry.

Credit: Source link






Richemont’s Enquirus is new digital platform to thwart luxury watch and jewellery thieves

Richemont, a key player in the luxury watch and jewellery sectors, announced on Thursday that it has launched “a neutral, global digital platform...

Upon Being Asked About The Viral Images Of Her And Hailey Bieber At The Event, Selena Gomez Responded

The images of Selena Gomez and her ex-boyfriend Justin Bieber's new wife, Hailey Bieber,...

Scott Disick Jokes About ‘Little’ Khloe, Kim on ‘Breakup Diets’

Scott Disick, Khloe Kardashian and Kim Kardashian Stewart Cook/PictureGroup for Hulu/Shutterstock; Matt Baron/Shutterstock (2) Noticing a change. Scott Disick commented on Kim Kardashian...

The 30-Minute Fat-Reducing Treatment Coming to a Department Store Near You This Fall

As Marisa Martino, co-founder at Skinney Medspa, says, the popular destination for non-invasive treatments always strives to work with the most cutting-edge...

The Ultimate Guide To Men’s Overcoats: 13 Essential Brands, History and Tips (Updated 2022)

If you have good taste, as the saying goes, you can shop anywhere. But knowing what to buy when you get there, well...
en English