SGMA: Sneakers Prices Steady in 2003; Athletic Outperforms Total Footwear Business

Relentless pressure by consumers for lower-priced athletic footwear abated somewhat in 2003, according to research by The NPD Group. Total spending increased 4.2%, from $15.693 billion to $16.354 billion, while total pairs purchased rose an almost identical 4.6%. The result was that the average price paid for a pair of athletic shoes in 2003 declined only 0.3%, to $36.48 from $36.61 the year before.
Despite the small gain in overall spending, athletic footwear outperformed the footwear industry as a whole. Total spending for footwear of all kinds fell 5% in 2002.

In 2002, the average price fell 4% from 2001. It has dropped 9% since 1998, when it was $40.07.

“Retailers in 2003 found they were able to attract consumers without offering the huge discounts that marked the year before,” said Gregg Hartley, vice president of SGMA International, which announced the results.

Consumers bought cautiously during the first half the 2003, with the result that total spending through June was no greater than the year before. But in the second half of 2003, consumers spent far more aggressively, driving up total sales for the last six months by 7.6%. “The sense of the industry is that this momentum has carried into the first quarter of 2004,” Hartley said.

“We are seeing more focus on product rather than price from the consumer, and this bodes well for the athletic footwear market,” said Marshall Cohen, industry analyst for The NPD Group. “It will take some effort by the retail community to adjust to the idea that price is not always the driving force in the market right now. People are interested in both fashion and function.”

Running remained the most popular shoe style, with 28% of the market in those stores that are most likely to offer performance styles, but spending for basketball styles rose to 23.3% of this market and continued to grow at a faster rate, The NPD Group reported. Spending for running styles in these key stores rose 2.2% in 2003 over 2002, compared to 6.2% for basketball styles. (NPD gathers point-of-sale data from athletic footwear and sporting goods stores, department stores and national chains to assemble information on style trends. These stores account for more than 50% of all athletic footwear spending. Consumer survey results and point-of-sale data from discount or off-price stores are not used in calculating the popularity of styles for various activities.)

Consumers reported that they purchased 448,276,000 pairs of athletic shoes in 2003, compared to 428,623,000 the year before. Spending for men’s shoes rose 2.2% in 2003 to $9.015 billion from $8.816 billion in 2002. Spending for women’s shoes rose 3.5% to $4.452 billion from $4.403 billion and spending for children’s shoes rose 11.8% to $16.354 billion from $15.693 billion. Average prices in 2003 for a pair of men’s shoes $45.76; for a pair of women’s, $35.19, and for a pair of children’s, $23.14.