Slipping Consumer Confidence Could Slow Shoe Sales Sooner Than Later


Consumers are concerned about tariffs and they are less confident than they were last month — that does not bode well for footwear sales.

“Consumer confidence weakened in June, erasing almost half of May’s sharp gains,” Stephanie Guichard, the Conference Board’s senior economist, global Indicators, said. “The decline was broad-based across components, with consumers’ assessments of the present situation and their expectations for the future both contributing to the deterioration.”

The Conference Board said on Tuesday that its Consumer Confidence Index fell to 93.0 in June from 98.4 in May. The Present Situation component fell 6.4 points to 129.1. The Expectations Index fell 4.6 points to 69.0, representing a level that was substantially below the threshold of 80 that typically signals that a recession is ahead.

“Consumers were less positive about current business conditions than May. Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labor market,” Guichard said.

She noted that the three components of the Expectations Index — business conditions, employment prospects, and future income — all weakened. And consumers were more pessimistic about business conditions and job availability over the next six months, with optimism about future income prospects eroding slightly.

The data points also reflected that the retreat in confidence was shared by all age groups, and almost all income groups. It was also shared across all political affiliations, withe the largest decline among Republicans, the Conference Board said.

As for write-in responses in June’s survey, Guichard said that tariffs “remained on top of consumers’ minds and were frequently associated with concerns about their negative impacts on the economy and prices.” Consumers also cite inflation and high prices as concerns.

While dining out was one of the few categories to see spending intentions rise in June, most other categories saw declines.

While shoe prices at retail slid 1.6 percent in June from a year ago in May, that’s already changing. Gary Raines, chief economist at the Footwear Distributors and Retailers of America (FDRA), told Footwear News that there was mounting evidence of surging average duties per pair on footwear imports. “These higher duties soon may push the average landed cost of footwear imports sharply higher, which in turn may pressure retail footwear prices to climb later this year,” FDRA’s Raines said.

Nike last month said it was raising some retail prices at its U.S. stores starting June 1, but not for any goods priced at $100 or less. The sports apparel and footwear brand also won’t be raising prices for any kids’s footwear or apparel items. In addition, there are no scheduled increases for any Jordan product. The average price uptick for apparel and equipment is between $2 and $10, while footwear currently between $100 and $150 will see increases up to $5 and those starting at $150 and higher will see increases up to $10, a source told FN.

Other footwear firms have also tinkered with price increases. Steve Madden Ltd. has also increased prices for select shoe styles, and the firm is also working to factories and suppliers on price concessions so it can keep increases to the consumer within a certain range. And over at Crocs Inc., CEO Andrew Rees said the company is being “super strategic” on pricing, with some targeted increases. He also expects the industry “to go up in terms of price” due to tariffs.

The next big shopping event for footwear will be back-to-school, which starts as early as July. Hibbett is ready with a new website and app dedicated to seeking kids products, and its set up for shoppers to find the lastest fashion and footwear styles in an easy-to-navigate format.



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