SGMA: Athletic Footwear Market Flat During First Six Months of ’03

It’s been a flat year so far for athletic footwear. Consumer spending for athletic shoes during the first half of 2003 was substantially the same as during the same period in 2002, according to research by The NPD Group. The number of pairs purchased also remained approximately the same.

During the first six months of this year, consumers spent $7.360 billion on athletic footwear, just .03% higher than the $7.334 billion spent in 2002. The number of pairs purchased in the 2003 period was 203.988 million, essentially unchanged from the 203.664 million pairs recorded in 2002. The average price per pair during the first six months of 2003 was $36.08, compared to $36.01 for the same period in 2002. The average price per pair for the full year 2002 was $36.61.

“The year got off to a rocky start for retailing with very hesitant spending, by both consumers and retail buyers,” said Gregg Hartley, vice president of SGMA International, which announced the findings. “The market was depressed over fears about the economy and the war. Now there is hope that consumer spending for athletic footwear is trending upward and that the second half will be stronger.” Hartley pointed out that consumer spending during the first quarter of 2003 was lower than in each of the two previous years, while spending in the second quarter of 2003 was higher than the corresponding quarters in 2002 and 2003.

Total spending for athletic footwear in 2002 was $15.694 billion, an increase of 2.5% over the $15.312 billion recorded in 2001.

Basketball styles continued to surge in popularity during the first six months of 2003, attracting a 12.7% increase in spending, to $1.678 billion. Running styles remained the most popular, attracting spending of $2.156 billion in 2003, a 1% gain over the first half of 2002. Two smaller categories posted impressive increases: tennis, which rose in spending by 12.9% to $331 million, and recreational boots, which attracted a spending increase of 14.7% to $59 million.

“Spending for athletic shoes is starting to rebound, and it’s not just for basketball shoes,” said Marshall Cohen, industry analyst for NPD Fashionworld. “Retro looks are still doing well. Retro basketball, tennis and running styles all showed double-digit growth during the first half of 2003.” He added that total spending for athletic footwear grew each month of 2003 over the previous one, except during May when bad weather may have temporarily slowed buying.

“There are early signs that the consumer is returning to the stores and spending money for both fashion and function in athletic footwear,” Cohen said. “That pair of athletic shoes that made it through the year last year may only wear well or look good for a few more months, so consumers are back to buying, albeit cautiously.”

Following the overall pattern, spending by demographic segment was also essentially unchanged in 2003 from 2002. In the first half of 2003, spending for men’s styles was $4.066 billion, compared to $4.170 billion in the same period last year. Spending for women’s styles was $2.077 billion, compared to $2.044 billion and spending for children’s styles was $1.216 billion, compared to $1.120 billion.

The average price paid for a pair of men’s shoes in the first six months of 2003 was $45.46, up from $44.99 in the same period in 2002. The average price paid for a pair of women’s shoes fell to $34.51 from $35.07. The average price paid for a pair of children’s shoes rose to $22.37 from $21.26.