Footwear Executives Are Concerned About the Economy and a Decline in Shoe Shopping

Footwear executives in Q2 reported a dwindling outlook for the economy and the shoe industry over the next six months, a new survey finds. In its quarterly survey of leaders at the top 100 shoe companies, the Footwear Distributors and Retailers of America (FDRA) found that 87.1% of executives expect to see shopper strength weaken, marking the fourth quarter of dwindling sentiment in this category. Just 37.4% of respondents reported that their company sales were higher than six months ago, down from about half of respondents in Q1. Only 31% expect company sales to rise over the next 6 months, down from over half in Q1, and 48.3% see sales exceeding pre-COVID levels. Almost two thirds of respondents saw no changes from hiring pauses in Q2. When it comes to specific concerns, a record 34.5% of respondents said new consumer behavior shifts were the biggest business issue expected over the next six months. In recent months, various retailers have reported surges in inventory as consumers shift their shopping preferences. Over 1/3 of respondents cited inflation as their company’s biggest issue over the next 6 months. In the most recent report from the Bureau of Labor Statistics consumer prices rose by 8.6% in May compared

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