Shoe prices showed minimal movement in December, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
Retail footwear prices inched up by just 0.6 percent compared to December 2023. Higher prices for children’s shoes, which rose 2.5 percent, and women’s footwear, up 0.4 percent, were offset by a 0.2 percent decrease in men’s footwear prices.
For the entire year of 2024, footwear prices increased a modest 0.7 percent, marking the second consecutive year of minimal change. Across segments, men’s shoe prices rose 2.0 percent, women’s footwear increased a negligible 0.1 percent, and children’s footwear prices slipped by 0.3 percent—only the second annual decline in the past fourteen years, according to the FDRA.
“We see this lack of price pressure for footwear owing to a combination of factors witnessed last year, from footwear imports growing faster than demand to lower average import costs to a stronger dollar,” said Gary Raines, FDRA’s chief economist. “However, looming tariff hikes could drastically disrupt this pattern, driving average duties per pair and landed costs significantly higher, potentially leading to higher retail footwear prices.”
Tariff Concerns for 2025
Steve Lamar, president and CEO of the American Apparel & Footwear Association (AAFA), echoed similar concerns about potential price increases under the looming threat of additional tariffs from President-elect Trump’s administration.
“Tariffs are taxes on consumers,” Lamar emphasized. “Whether collected by Customs or a proposed new ‘External Revenue Service,’ these costs are ultimately passed on to Americans at the register. As consumers prepare for spring break travel and seasonal holidays, the rising cost of shoes, clothes, and accessories could become a significant burden.”
Footwear Prices in Context of Broader Inflation
The modest change in footwear prices coincided with an uptick in overall inflation. The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.4 percent in December on a seasonally adjusted basis, following a 0.3 percent increase in November. Over the past year, prices have risen 2.9 percent, driven by high energy and food costs.
Excluding food and energy, the core CPI rose 0.2 percent in December and 3.2 percent over the last 12 months.
As the industry braces for potential tariff hikes, 2025 could bring new challenges for both retailers and consumers, potentially ending the stability seen in recent years.