Everything, from fuel to fashion to supermarkets, seems to be becoming more expensive. As inflation rises at an unprecedented rate, footwear is the latest to experience an increase in price.
Consumer prices in the United States have increased by 5.4 percent in September. Further increases are expected during the remaining of 2021, as well as the holiday season. According to the Bureau of Labor Statistics, shoe prices rose 6.5 percent in September compared to last year. Footwear News reported that women’s shoes increased by 4.9 percent, while children’s footwear rose by 11.9 percent. Men’s footwear went up by 5.5 percent.
Footwear Distributors and Retailers of America’s (FDRA), shows that shoe prices are rising at an unprecedented rate for the past two decades. The reason for the rise in prices was cited by the Shoe Price Report. It cites higher wages for retail staff as well as increased import duties and taxes.
Gary Raines, chief economist at FDRA, stated that shoppers who are used to low inflation might be surprised to see fewer staff at their stores this holiday season.
Footwear News reported that the rise in footwear prices could also be due to an increase in import costs, which reached 146.3 million dollars in August. “This was the seventh consecutive month of an increase year-over-year. The global footwear news outlet reported that duties rose to 320.6 million dollars in August, for the sixth consecutive month.”
Raines stated that footwear shoppers are suffering from the effects of both rising China duties and surging demand, which are driving retail footwear prices significantly higher. These gains are expected to continue well into next year, according to Raines.
Brands like Nike, Adidas, and Under Armour are facing inventory shortages before the holiday season because of factory closures in Vietnam. This will make it a difficult last quarter.
Most athletic shoes are made of synthetic materials such as nylon mesh, plastic, and polyurethane foam. This increases the supply of raw materials, which in turn leads to increased costs for companies.
Transport costs have risen 500 percent in comparison to pre-pandemic levels. Consumers are seeing an increase in their prices on all fronts, and this trend is likely to continue.