US households with kids cut back on adult footwear: Report

15 Apr '23

2 min read

Pic: Shutterstock

Insights

US households with kids are reducing their spending on adult footwear, leading to a decline in sales revenue and unit sales.
However, families have not reduced spending on their children's footwear.
Generational trends also show a shift in spending, with millennial and gen Z households with kids prioritising their children's footwear needs over their own.

US households with kids are cutting back on footwear spending more than those without, as parents prioritise their children’s footwear over their own, according to Circana, a data analytics firm formerly known as IRI and The NPD Group. The 12 months ending February 2023 saw an overall decline of 1 per cent in footwear sales revenue and an 8 per cent drop in unit sales among households with kids under the age of 18. In contrast, households without kids experienced an 11 per cent increase in sales revenue and flat unit sales.

Despite the decrease in spending on adult footwear, families have not reduced spending on their kids’ footwear. In fact, shoes for kids were the fastest-growing segment of the footwear market. Consumers spent more on kids’ footwear, thanks to average price increases, and spending per buyer grew 9 per cent year over year, according to the company’s Checkout data.

The generational trends in footwear spending were also evident, with millennial households with kids contributing to a quarter of the total market declines and gen Z households with kids accounting for half of the declines. These segments experienced declines in adult footwear sales but increased spending on kids’ footwear. On the other hand, millennial households without kids were responsible for almost 45 per cent of the annual market growth.

Beth Goldstein, footwear and accessories analyst at Circana, said: “Families are obviously feeling the pressure from inflation. Without the government assistance that many households with children had previously received, they are now prioritising their kids’ footwear replacement needs over their own.

“As footwear brands and retailers look for growth, messaging around value for the family will be important. These consumers are feeling the pinch due to increased prices on many of their household necessities.”

Fibre2Fashion News Desk (DP)

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