SGMA: Athletic Footwear Running Strong in 2005

SGMA reported that, based on NPD Group data, a strong turnaround in the men’s category caused consumer spending for athletic footwear to rise 10% during the first half of 2005. It was the largest half-year gain the industry has recorded in many years.

Total spending for athletic footwear rose to $8.7 billion for the 2005 period, compared to $7.9 billion during the first six months of 2004. In another heartening development for the industry, the average price paid for a pair of athletic shoes rose 5%, to $34.43. The trend in recent years has been in the other direction, toward lower average prices as consumers sought bargains and opted for casual, rather than performance, fashions.

“The industry noted a return late in 2004 to higher-priced performance styles, and that was, doubtlessly, an important factor in the men’s segment,” said Gregg Hartley, vice president of SGMA International, which announced the results.

Total spending for men’s athletic footwear rose nearly 14% during the six-month period, to $4.3 billion, and the average price paid for a pair of men’s shoes increased 4%, to $43.56. This category experienced declines in spending for the full years in both 2003 and 2004. “In the meantime, low-performance casual styles remained very popular as well, so the industry got a boost from both segments,” Hartley said. NPD point-of-purchase data from selected national chains found that spending for low-performance styles rose 13% in during the period.

Spending for women’s athletic shoes rose 8% to $2.7 billion. The average price per pair increased 10%, to $36.82. Spending for children’s shoes was also up 8%, to $1.7 billion. The average price per pair slipped 1% to $21.02.

The most popular shoe style category, running, grew by 5% — holding a 29.5% share of all sales in non-discount stores. The second most-popular style, basketball, registered a sales increase of 7.5% for 22.3% of all sales in these stores.

The over $75 price segment fueled the growth as across all sport categories, the over $75 price segment is up 31% on both a dollar and a unit basis.

Within running, men’s and women’s Nike Shox, typically worn for both their stylish look and for sport, top the list. The Asics GT series is also selling well at retail. In basketball, both performance and fashion seem to be driving sales with a mix of Nike’s Air Force 1 and Air Jordan product performing well. Nike has also had success by partnering with young basketball stars, LeBron James and Carmelo Anthony.

Low Performance footwear, branded as “Athleisure” by NPD, remains strong as well. Classic styles from K-Swiss, Converse and Keds, featuring leather and canvas materials, have propelled sales; while Skechers and Puma have leveraged breathable mesh materials for everyday comfort and a wide palette of colors to match any outfit.