Shoe prices increased slightly in July as overall inflation slows, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
Last month, retail footwear prices saw only a modest increase again in July, rising just 1.0 percent year-over-year. The gain came as prices for men’s footwear increased 2.2 percent and women’s shoes rose 1.1 percent in July. The increases more than offset the fifth straight decline in children’s shoe prices, which dipped 0.9 percent.
“The July numbers echo our earlier view of ‘the long right tail’ for overall inflation—that is, that price increases likely taking longer to taper to the Fed’s 2 percent target,” Gary Raines, chief economist at FDRA, told FN. “These figures also cement prospects that retail footwear prices would see only modest changes this year.”
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More particularly, Raines noted that over the first seven months of 2024, retail footwear prices are up just 0.9 percent, with higher men’s (up 2.2 percent) and women’s (up 1.1 percent) footwear prices overshadowing a 1.2 percent decline in year-to-date prices for children’s footwear.
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“On a related note, children’s annual footwear prices remain on track to decline in 2024 for only the second time in the last fourteen years,” the executive said.
As children’s footwear prices come down, families now have more room to focus on shoe attributes outside of price when shopping for back-to-school, a trend previously noted by Circana. Overall, though, the FDRA expects revenue from back-to-school shoe sales to be up this year, even though unit sales could be down.
“We also see that moms are absolutely looking for a better shoe for their buck,” Matt Priest, president and chief executive officer of FDRA, told FN in July. “This is what we may consider a ‘value driven’ back-to-school season where price drives traffic but value matters for the actual purchase.”
July’s rise in footwear prices comes at the same time the Bureau of Labor Statistics reported that overall retail prices saw the smallest 12-month increase since March 2021.
The bureau’s latest Consumer Price Index (CPI) saw prices increased 0.2 percent on a seasonally adjusted basis, after declining 0.1 percent in June. Prices were also up 2.9 percent over the last 12 months.
Excluding volatile food and energy costs, the core CPI rose 0.2 percent in July, after rising 0.1 percent the preceding month, and increased 3.2 percent over the same time last year.
