2017 Footwear Sales Didn’t Leave Much of an

Transcript:2017 Footwear Sales Didn’t Leave Much of an:
2017 Footwear Sales Didn’t Leave Much of an Impression As reported in the Shoe Market 2017 Profiler, total retail sales decreased 0.92% for the first half of the year. The trend continued, as 2017’s total retail sales of $35.617 billion decreased 1.2% for the year, compared to 2016’s total of $36.043 billion. Without the 2% increase in 2017 athletic footwear sales, to $19.6 billion, total retail footwear sales for 2017 would have been further in the red. Unit sales of athletic footwear also increased 2%, but the average selling price was flat, at $58.16. Within the athletic footwear category, sales of women’s shoes increased 5%, while men’s, the largest sector, and children’s increased just 1% each. The sports leisure sector was largely responsible, as its $9.6 billion in sales was a 17% increase. The Industry Found Its Stride During the First Half of 2018 2018 started quite stagnant for the US footwear market, as February sales increased in the low single-digits, although the sports lifestyle sector, the largest in athletic footwear, continued to drive the market with a 16% increase. For the year ending April 2018, The NPD Group reported a 17% increase in dollars for the non-performance, athletic-inspired sneaker sector. The men’s market performed much better than during 2017, increasing 10%, while women’s sales increased 33%. Then, during an August 2018 industry event, a representative of The NPD Group stated total sales had increased 4% year over year, including online sales, which were primarily responsible, but branded stores were also experiencing a resurgence. Casual Athletic Footwear Leads the Race Two factors appear to be driving the significant increases in the sales of non-performance athletic, or athleisure, footwear: the workplace becoming more casual and women’s high heel sales decreasing 11% during 2017. According to Coresight Research, the US athleisure market will total almost $116 billion for 2018, with footwear $37 billion of that total. By 2020, sports footwear sales are forecast to increase 13%. Nike certainly understands these trends, as it will offer more sizes in women’s sneakers and other expansions for this market during 2018, which may be why its fiscal 4Q18 revenues were $9.79 billion, a 12.9% increase from 4Q17. Price and Special Offers Attract More Footwear Buyers Than Quality According to YouGuv’s report, The Face of Fashion, unsurprisingly, “cheapest prices overall,” at 23%, was the leading purchase motivators among footwear consumers, with “best special offers,” second at