Decline in sales of sports shoes, the market will soon be promotional – Footwear News
Athletic shoe sales dipped early in the year and promotions could define the second half of 2022.
Matt Powell, senior athletic industry adviser at The NPD Group, shared athletic shoe data during the market research firm’s trending breakfast Friday morning at Outdoor Retailer Summer in Denver. During his presentation, Powell shared data from the NPD Group’s retail tracking service which revealed an 8.2% drop in athletic shoe sales from January to March compared to the same period in 2021.
For the first three months of 2022, athletic shoe sales totaled $6.09 billion, according to The NPD Group’s retail tracking service, down $546 million from 6, $65 billion from the previous year.
“It’s a major reversal from what we saw last year. If you recall, last year we were up about 20% in athletic shoes with an average selling price of about 15%. [percent]”Powell said. “What we think is happening here is a lack of stimulus money this year compared to a year ago. That money ended up in some of the discretionary categories like shoes and clothes.
Although down, the industry insider offered a positive outlook for the second half of the year. “We expect this activity to improve as we enter the second half when stimulus money has had less of an impact than the first half of last year,” Powell said.
He did, however, state in his predictions at the end of his presentation that the lack of stimulus money this year “could be a headwind for at least the next 90 days or so, if not longer.
Despite the decline in athletic shoe sales, the brand in 2022 is much stronger than the same period in 2020, which was $4.84 billion. Powell explained that while there has been a drop, the good news is that the most recent ratings are well above 2019 levels, and the market has been “reset to a new, higher normal.”
Today, NPD released data that revealed some bright spots in athletic footwear to start the year. Looking at how the focus on health and wellness is impacting the footwear, apparel and sporting goods markets, NPD said sales of running and hiking shoes have increased by about 20% from January to April compared to the same period three years ago, and that walking shoes had increased more. by 30%.
The industry insider also shared data that showed a decline in promoted dollars compared to 2021 and 2020. According to the NPD Group’s retail tracking service, promoted shoes for sneakers in Dollar volume terms totaled $1.88 million from January to March, down 19%. of $2.32 million for the same period in 2021. In 2020, shoes promoted for the same period for athletic shoes in terms of dollar volume totaled $2 million.
Additionally, promoted shoes in terms of unit volume from January to March were 43 million, down 12% from 2021, which was 49 million for the same period. In 2020, the shoes promoted in terms of unit volume for the same period was 46 million.
That could change in the coming months, however, according to Powell. The change would be the result of reducing current supply chain issues, which could lead to too much product on the market.
“I think we’re going to see way too much retail inventory and that’s going to force us to be more promotional,” Powell said.