The Footwear Distributors and Retailers of America (FDRA) released the results of its second quarter 2025 Shoe Executive Business Survey, showing the vast majority of industry leaders see footwear prices rising this year by over 5 percent, with 60 percent expecting a double-digit surge in the landed cost of footwear due to tariffs in the second half.

Of the footwear executives surveyed, 55 percent expect their average footwear retail prices to rise between 6 percent and 10 percent in 2025, with 20 percent anticipating prices to increase by more than 10 percent.

FDRA noted that, in more than 40 years, annual footwear prices have never risen by more than 5 percent.

Of the remaining surveyed respondents, 10 percent expect an increase of between 1 percent and 5 percent, 5 percent expect no pricing change, and the remaining 10 percent either did not know or the question did not apply to their company.

The survey shows that footwear executives plan to absorb or mitigate much of the tariff impacts. Asked how much they expect their average landed cost to rise in 2025 due to higher tariffs on footwear, 40 percent of respondents indicated a rise of between 11 percent to 20 percent, and 20 percent forecasted it would be over 20 percent.

For comparison, FDRA noted that this has only occurred three times in 35 years, with annual average landed costs rising over 10 percent.
Among the rest of the respondents, about one-third (32.5 percent) reported that landing costs increased by 1 percent to 10 percent.

The survey also revealed ongoing concerns among industry leaders regarding the impact of softening consumer demand amid the fallout from tariffs.

Of the surveyed respondents, 82 percent expect a “weak” or “very weak” U.S. economy over the next six months, 88 percent forecast weaker demand from consumers shopping for shoes, and 49 percent expect declining sales in the months ahead.

On balance, a record share of over three in five forecast their company’s health to be “weaker” or “very weak” over the next six months, nearly triple the share witnessed two quarters ago.

Facing these pressures, 58 percent of respondents cited government interference — primarily tariffs — as a top business concern, over three times the share before the election.

FDRA said in its report, “The latest Quarterly Executive Sentiment Survey reveals that under the new and evolving tariff regime from Washington, footwear industry sentiment remains downbeat, with most expecting costs and retail prices, due to tariffs, to jump over the second half of the year as the economy and shoe shopping weaken, weighing on companies’ health.”

Other findings in the report identify:

  • Record shares of respondents plan to decrease hiring, curb spending on CAPEX and pare their operating costs for the balance of the year.
  • Only 14.0 percent of survey respondents reported difficulty in finding workers to hire, tied for the lowest share on record.
  • Looking further ahead, a record-low 22 percent of respondents plan for increased comp sales over the next year.

Image courtesy Nordstrom