Shoe Prices Rise Slightly in December, Ending the Year Up 0.2 Percent Over 2022
Shoe prices rose slightly in December in tandem with overall consumer retail prices, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
Last month, overall footwear prices rose a lukewarm 0.7 percent in December, extending a streak of modest changes to more than a year. The tepid increase came as children’s footwear prices experienced the biggest tumble in 33 months, down 2.0 percent, partially offset by rising prices for men’s footwear, up 1.3 percent, and women’s footwear, up 1.9 percent.
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These changes peg full-year footwear prices up a scant 0.2 percent, as higher women’s prices, up 1.1 percent, and children’s prices, up 0.4 percent, which offset lower men’s prices, down 0.5 percent.
The modest change in annual retail footwear prices comes as the average landed cost of footwear also was little changed in 2023, both confirm the FDRA’s long-held outlooks.
“Looking ahead, while domestic retailers’ footwear inventories are relatively high, they have declined considerably over recent quarters as footwear imports have sharply fallen,” Gary Raines, chief economist at FDRA, told FN. “While we expect footwear demand will remain dull well into 2024, we look for footwear imports to fade further in coming months, suggesting inventories will decline further, helping return some margin and pricing power to footwear retailers deeper into the year.”
Steve Lamar, president and CEO of the American Apparel & Footwear Association (AAFA), added that today’s numbers are “another painful reminder” that inflation in the footwear sector is not letting up any time soon. “More action is need by the Administration and Congress to help rein in inflationary pressures by eliminating regressive shoe tariffs and addressing new threats posed by logistics concerns in Suez and Panama,” Lamar said.
This latest rise in footwear prices comes at the same time the Bureau of Labor Statistics reported that overall retail prices increased slightly in December from the previous month.
The bureau’s latest Consumer Price Index (CPI) saw prices increase 0.3 percent last month from November and up 3.4 percent from the same month last year. Excluding volatile food and energy costs, the core CPI rose 0.3 percent in December and 3.9 percent from the same month in 2022.
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