Athletic Footwear Posts Modest Gains In 1997; Retail Sales Climb 5%, but Slip in 4th Quarter; Running Shoes Soar 38% on Fashion Boom
Business Wire - April 13, 1998 09:13
NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--April 13, 1998--Consumer spending for athletic footwear increased 5% during 1997 even though the number of pairs purchased rose only 1% over 1996, according to national surveys by a leading market research firm.
The surveys found that total spending for athletic footwear reached $14.7 billion in 1997, compared to $14.1 billion in 1996. Total pairs purchased rose to 346.6 million, from 341.8 million. Thus the average price paid rose for the third year in a row, to $42.50, 3% over $41.20 for 1996.
The studies, by the NPD Group, also revealed that sales slowed in the fourth quarter, that consumers increased spending on higher priced shoes and that running shoe styles continued their popularity sprint.
"During the fourth quarter, sales dipped below 1996 levels in terms of both units (down 4%) and dollars (down 1%), which raises concerns about the outlook for 1998," said Gregg Hartley, executive director of the Athletic Footwear Association, which announced the findings. After a weak first quarter, dollar sales in the second and third quarters were up 9% and 12% respectively in 1997, while unit sales for the two middle quarters rose 7% and 8% respectively.
Shoes cost $85 or more experienced the greatest percentage growth, increasing 18% in dollar sales over 1996. These shoes represent 15% of total dollars spent. Sales of models priced $30 and less declined by 4%. These shoes represent 17% of all dollars spent.
"Consumer acceptance of footwear in the higher price points continued through the fourth quarter," said Dianne Miller, director of NPD's sports division. "There has been a lot of press coverage recently about disappointing sales at the $85-plus and $100-plus levels, but this does not seem to be because consumers are buying fewer shoes at these prices; they just may not be buying as many as manufacturers and retailers had hoped."
Against a backdrop of modest industry gains, running shoes enjoyed a startling 38% increase in dollar sales, to $2.3 billion. Basketball, the most popular category, rose 2% to $3.0 billion. Cross training, the second most popular category, declined 8% to $2.5 billion.
"There's no evidence of a major increase in running," said AFA's Hartley. "The running shoe boom is almost entirely a matter of style, a trend to sleeker looks than basketball or cross training."
Sales of women's athletic footwear rose 6% to $6.7 billion, while men's models climbed 3% to $6.1 billion. The average price paid for women's shoes, $41.10, is not as high as for men's, $51.14, but it has been growing at a faster rate. Since 1993, the average spent for women's shoes has grown 10%, while the men's shoe average rose 7%.
Hiking and outdoor shoes continued a sales decline that began in 1995. Sales in 1997 fell 13% to $858 million. "We're hearing a lot about the popularity of 'brown shoes,'" Hartley said, "but this is not being felt in the hiking category. If brown shoes are gaining sales, they must be casual street styles, not athletic models."
The Athletic Footwear Association is composed of about 140 companies that market and distribute athletic footwear in the U.S. It is part of the Sporting Goods Manufacturers Assocations.
www.sportlink.com
The NPD Group, Port Washington, N.Y., is the 10th largest market research firm in the U.S. and has offices and affiliates in 33 countries. For its athletic footwear study, it surveys 30,000 households each quarter (120,000 annually). The results are balanced to reflect the population as a whole.
www.npd.com
CONTACT: Athletic Footwear Association
Gregg Hartley, 561/840-1161
Dan Kellams, 212/779-3820
or
NPD Group
Leslie Singer, 516/625-2302
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