Shoe Sales May Slow as Consumer Confidence Takes a Hit: Strategies for Retailers to Mitigate the Impact

According to recent data from The Conference Board, consumers are becoming increasingly concerned about tariffs and their impact on the economy. The Consumer Confidence Index fell to 93.0 in June, down from 98.4 in May, signaling a weakening of consumer confidence. This decline was broad-based across all components, with consumers' assessments of the present situation and their expectations for the future both contributing to the deterioration.

"Consumers were less positive about current business conditions than May," said Stephanie Guichard, senior economist at The Conference Board. "Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labor market."

The data also showed that the retreat in confidence was shared by all age groups and almost all income groups, with the largest decline among Republicans. Tariffs were a major concern for consumers, with many citing their negative impact on the economy and prices.

As a result of these concerns, footwear sales may take a hit. While shoe prices at retail slid 1.6 percent in June from a year ago in May, that trend may soon change. Higher duties on footwear imports could push up the average landed cost of footwear imports sharply, which in turn could pressure retail footwear prices to climb later this year.

Nike recently announced that it would be raising some retail prices at its U.S. stores starting June 1, but not for any goods priced at $100 or less. Other footwear firms have also tinkered with price increases, with some targeting specific styles or product lines.

The next big shopping event for footwear will be back-to-school, which starts as early as July. Hibbett is ready with a new website and app dedicated to seeking kids products, and its set up for shoppers to find the latest fashion and footwear styles in an easy-to-navigate format.

In light of these developments, it's clear that consumer confidence is taking a hit, and footwear sales may suffer as a result. Retailers will need to be proactive in addressing consumer concerns and finding ways to keep prices affordable while still maintaining profitability.