Footwear sales expected to see more modest growth – WWD
After a period of robust growth during the peak pandemic period in 2021, the industry will see “more modest growth” going forward, according to the NPD Group.
The company’s NPD price tracker report noted that, largely due to pent-up demand and higher average selling prices, “footwear revenues peaked in 2021, growing 23% compared to 2020, with unit sales also growing in double digits.” However, revenues and unit sales are expected to stabilize through 2024.”
Several factors are leading to the deceleration in sales.
Matt Powell, sports industry adviser at NPD, said the number and depth “of promotions have declined since the start of the pandemic. Supply issues have led to reduced inventory, which has allowed brands to promote less and sell more shoes at full price Supply chain issues will ease from this year onwards, but the industry is at real risk of overshooting demand leading to more promotion and loss of margin if mismanaged.
As a result, NPD said in its report that industry revenue and unit sales “are on track for a single-digit increase through 2024, although units will remain just below pre-existing levels. the 2019 pandemic.
Regarding footwear segment performance, NPD said the fashion footwear category “lags behind the athletic-recreational, performance and outdoor footwear categories, in terms of recovery.” However, NPD said that as consumer lifestyles evolve to include more social activities, “certain styles will help the fashion category outpace 2019 revenue by the end of this year.”
Beth Goldstein, Fashion Footwear & Accessories Analyst at NPD, said: “Although unit sales are lagging, we expect the fashion category to top its 2019 sales, helped by rising prices. . The most notable silhouettes will be those that match consumer demand for casual comfort as they return to certain pre-pandemic events and activities, while retaining certain pandemic-related behaviors.
America’s shoe distributors and retailers said the industry’s shoe sales hit $100 billion in 2021, up 23% from 2020.