Global consultancy firm Simon-Kucher has released its 2024 Footwear Report. Many of the findings were to be expected, with top online retailers like Amazon and Zappos grabbing the most dollars; followed by athletic/outdoor stores including REI, DSW, Foot Locker; and finally your Walmart/Target superstores. The survey revealed an annual spend of $255 on footwear last year per consumer, with athletic shoes as the top category.
One of the most surprising findings, however, was that men outspent their female counterparts last year. A whopping 42% of men bought three or more pairs of shoes, compared to 39% of women. Dudes also shelled out more cash on kicks ($295) than the ladies ($217). Plus, more men plan to increase discretionary spending next year, while many women (31%) plan to cut back. Women are also more likely to hunt for a deal when faced with a price increase, while guys are more likely to buy the product anyway.
Footwear Spending: Let’s Make a Deal
Footwear snagged the last spot in the top 10 categories where consumers plan to cut back next year, but there’s no need for alarm bells. Gen Z and Millennial consumers (the biggest spenders on shoes) plan to increase their discretionary spending more than reduce it. Overall, the median budget for footwear spending looks to drop by ~$35 next year. And, consumers are paying more attention to price, as they’ve noticed shoe costs (like everything else) have jumped recently. Most shoppers look around multiple stores/websites to find the best price before buying. A staggering 69% say they check 2-3 stores or websites for the best deal before buying.
But it’s not just shoes…Consumers plan to cut back in adjacent categories as well. Simon-Kucher forecasts a $20 drop in apparel spend as well.
Overall, shoe volume is expected to decrease by 16% over the next 12 months. So the key for retailers will be to optimize assortment and focus on pricing and promotions strategy. Consumers have noticed an increase in price and many are waiting for that big sale: Amazon Prime Day has become a close second to the highly anticipated Black Friday price cuts.
Along with price, consumers name fit/comfort as their key purchase factor. So it’s no surprise athletic shoes continue to dominate. Casual is the name of the game, and younger consumers have little to no interest in dress shoes. For their fancy kicks, they heavily prefer basketball shoes and designer sneakers.
All generations prefer to buy their footwear from online retailers more than any other store, but Baby Boomers and Millennials prefer it the most. Millennials are most likely to buy footwear from superstores like Target and Walmart; 35% said they shop here compared to 26% or less of other generational groups who said the same.
Millennials and Gen Z consumers are the most price conscious, but they’re still outspending their older counterparts. Millennials spend the most on shoes, an average of $346 per year, 36% above average.
