December 17, 2024 Press Release

FDRA’s Q4 Survey Shows 82% of Shoe Executives Brace for Tariff-Driven Cost Surge in 2025, Retail Prices Set to Climb at Record Rate

Despite improving outlook for economy and shoe shoppers, execs anticipate higher costs and prices directly related to new tariffs.

WASHINGTON, D.C. – The Q4 2024 Shoe Executive Business Outlook Survey, conducted by Footwear Distributors and Retailers of America (FDRA), highlights significant concerns among industry leaders regarding the impact of higher tariffs on footwear. Respondents anticipate sharp increases in consumer retail prices, fueled by growing government interference through taxes, regulations, and duties.

As consumer demand recovers, these additional pressures threaten to further inflate retail prices, complicating an already challenging economic environment.

Here’s a statement from Matt Priest, FDRA President and CEO:

“Our latest survey highlights tariffs continue to be a significant concern for footwear executives, with 60% of respondents identifying government policies as their biggest challenge. This underscores the need for a more refined approach to trade policy.

“As we prepare to work with the President-elect and his administration, we urge policymakers to take a more surgical approach to tariffs—implementing strategic, targeted measures rather than blanket policies ultimately placing the burden on American consumers. Footwear prices are already rising, and indiscriminate tariffs only risk further harming industry growth, economic stability, and consumer confidence.”

To watch Matt Priest discuss footwear tariffs on FOX News Live, click HERE.

Survey’s Key Findings:

Respondent’s 6-month outlooks for the economy improved

• Over half of executives see their company sales higher from 6 months ago and likely to rise further over the next 6 months
• Fewer than last quarter are as upbeat on sentiment for their company’s health, owing to cost pressures

Over half of executives expect their operating costs to rise over the next half year

• 82% of respondents anticipate rising landed costs in 2025 due to higher tariffs, doubling from the previous quarter.
• Over 60% expect operating costs to increase, marking the highest share in eight quarters.

Retail Prices Expected to Climb

• 37% of respondents predict retail prices will rise more than 5% in 2025, with an additional 20% forecasting increases between 11% and 20%.
• Retail prices are expected to outpace historical trends, with footwear executives cautioning that prices haven’t risen this rapidly in over 40 years.

Government Interference Emerges as a Major Concern

• A record 32.7% of respondents identified taxes, duties, and regulations as their top challenge for the next six months.
• Nearly 3 in 5 executives believe higher tariffs will directly raise both landed costs and retail prices.

Recent Coverage on Footwear Trends:

1. FOX News Live: Trump Threatens 25% Tariff on Canada, Mexico 
2. Footwear News:  Shoe Brands at FFANY and FSNYE Highlight Strong Demand As They Navigate Potential Tariff Challenges
3. Gray Television: What are tariffs and how might they be used by President-elect Trump?

For more information about the survey or to schedule an interview with Matt Priest, please contact FDRA at fdracomms@cgagroup.com.

About FDRA: FDRA is governed and directed by footwear executives and is the only trade organization focused solely on the footwear industry. Serving the full footwear supply chain, it boosts its members’ bottom lines through innovative products, training, consulting on footwear design and development, sourcing and compliance, trade and customs, advocacy, and consumer and sales trend analysis for shoe retailers around the world. FDRA supports 500 companies and brands worldwide, representing 95% of the total U.S. footwear industry.

To schedule an interview with Matt Priest on the state of the footwear industry, please email fdracomms@cgagroup.com.