Shoe Stores Industry Profile

Companies in this industry primarily sell casual, dress, and athletic shoes, including orthopedic shoes, from physical retail locations. Major companies include Caleres, DSW, Foot Locker, and Genesco (all based in the US), along with Deichmann Group (Germany). Some shoe manufacturers such as Nike, also have retail operations.

Driven by fresh trends and designs through connected technology and changing lifestyles, the global footwear market is expected to expand in the next decade, hitting a compound annual growth rate (CAGR) of 4.3% to about $600 billion by 2032, according to Straits Research.

The US shoe store industry includes about 25,000 stores with combined annual revenue of about $36 billion.

COMPETITIVE LANDSCAPE

New styles and personal income drive demand. The profitability of individual companies depends on effective merchandising and competitive pricing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. The US industry is concentrated: the top 50 companies account for about 80% of industry revenue.

Shoe stores compete with department stores, mass merchandisers, apparel retailers, internet retailers, and some shoe manufacturers. The success of Amazon-owned Zappos.com and ongoing consumer migration to online and mobile shopping has increased price competition for shoe sales and forced retailers to lower shipping costs, speed delivery times, and optimize their mobile platforms.

About $26 billion of the shoes sold in the US ...