According to the AlixPartners Fall 2024 Footwear Study, conducted in partnership with the FDRA (Footwear Distributors and Retailers of America), quality, comfort, fit, and design are more important than price when they asked consumers what was “Somewhat Important” or “Very Important” when shopping for back-to-school (BTS) footwear.
AlixPartners, a financial advisory and global consulting firm, stated, “Parents, preparing to send children back to school amid another year of inflationary pressure, are focusing more on the overall value of footwear than simply finding the best deal.”
The study, compiled from a survey with over 1,000 adult participants, also found that footwear product reviews and referrals held more sway than the cost of shoes. Meanwhile, brand was the only attribute considered a “Lower Priority” than price when purchasing.
“We’re seeing a shift in how parents view footwear products and prices,” said Bryan Eshelman, partner and managing director at AlixPartners and Americas Retail practice lead. ”While inflation has been an obsession among shoppers around cost—recently raising the importance of discounts to drive traffic—the deal alone isn’t what’s converting sales of kids’ shoes today. Consumers, in fact, are more focused on value for their spend.”
Surveyed respondents said they expect to spend 16 percent more on BTS footwear this fall, regardless of income threshold, on a net basis, versus the same period last year. Respondents earning over an annual income of $100,000 expect to spend 38 percent more than last year on BTS footwear, while those respondents earning less than $100,000 planned for a 14 percent increase over what they spent on BTS footwear last year. Only 25 percent of respondents plan to spend less than last year.
Expectations for higher footwear spending reverse the Spring 2024 trend in which surveyed respondents told AlixPartners and the FDRA they anticipated spending less on footwear for summer than in the previous year.
Though 75 percent of surveyed respondents plan to spend more on fall BTS footwear this year than they did in 2023, they expect their dollars will not go as far, which could translate to unit volume being flat or decreasing over 2023.
Two-thirds of respondents said they plan to do more price comparison shopping this year than last, and the data shows that quality and comfort are priorities.
According to the FDRA analysis, consumers’ spending on footwear was modestly higher through midyear. The same is true for prices; however, there was a 0.9 percent rise in the first half of 2024 compared to the same period in 2023.
Browse Online, Buy In-Store
Nearly two-thirds (63 percent) of the 2024 report’s respondents tend to purchase the majority of footwear in-store, with 45 percent saying they buy a “majority” of footwear in-store and 18 percent saying they make “nearly all” purchases in-store. Of the remaining 37 percent, just 10 percent said they make “nearly all” footwear purchases online. The remaining (27 percent) said they purchase a “majority” online.
According to the survey, window shopping is increasingly an online activity. More than one-third (34 percent) of respondents start their search for BTS on Amazon.com, followed by 21 percent going to brand websites and 16 percent using search engines.
“While consumers remain relatively committed to finalizing their purchase in-store, the internet increasingly influences spending decisions,” said Matt Priest, president and CEO of the FDRA. “This means critical steps in the process of finding the most shoe for the buck—from assessing brands to researching models or comparing prices—are taking place online. Retailers and brands cannot afford to rely on a single-channel approach to winning the battle for attention and dollars in a crowded footwear marketplace.”
Other key findings in the 2024 survey include:
- While logos matter, brands are of varying interest based on income level. Of those earning above $100,000, 76 percent of respondents said a shoe brand is a key consideration; that number drops to 58 percent among respondents earning below $100,000.
- Kids also have varying levels of influence. Some 61 percent of middle schoolers have significant sway over parents’ footwear-purchasing decisions; that number dips slightly to 59 percent of high schoolers represented; 48 percent and 35 percent of elementary and kindergarten kids, respectively, offer strong input.
- Forty-two percent of respondents identified word-of-mouth endorsement as the biggest external influence in purchasing decisions. By contrast, 27 percent of respondents identified marketing messages, including those disseminated through social media, as the top external influence.
“In this highly competitive environment, retailers must drive consumer interest with a broad selection in assortment, a personalized and targeted message, or highly competitive prices on visible and widely carried styles,” Eshelman said.
Image courtesy Stride Rite