Tariffs and Consolidation: The Uncertain Future of Footwear Retail

The footwear industry is facing uncertainty due to President Trump's trade policy and tariffs. Retailers are shifting strategies in real-time, with some waiting to see what happens to duty rates after a temporary 90-day freeze ends this summer. The industry is also experiencing consolidation, with Dick's Sporting Goods set to buy Foot Locker and Skechers going private. An "elevated pricing landscape" is expected due to tariff uncertainties, making it difficult for brands and retailers to make decisions for the June market.

The footwear industry is currently navigating a period of significant uncertainty due to President Trump's trade policy and the implementation of reciprocal tariffs. The Footwear Distributors and Retailers of America (FDRA) has been advocating for a reset in trade policy, with FDRA president and CEO Matt Priest expressing hope that the temporary 90-day freeze on tariffs will facilitate talks for renegotiating trade agreements [1].

The pause on tariffs, set to end for most countries on July 9, has provided a window for discussions, but the future remains uncertain. Retailers are grappling with the potential impact of tariffs on prices, with some expecting an "elevated pricing landscape" for the foreseeable future [2]. This uncertainty is making it challenging for brands and retailers to make informed decisions for the upcoming June market.

The industry is also experiencing consolidation. Dick's Sporting Goods is set to acquire Foot Locker, while Skechers is expected to go private in the biggest shoe buyout in the industry's history. These moves highlight the industry's response to the volatile trade environment and the need for strategic adjustments.

Retailers are shifting their strategies in real-time, with some adopting a "wait-and-see" approach. For example, Walmart CEO Doug McMillon mentioned that the retailer has been adjusting quantities based on changing tariff numbers [2]. Other retailers, such as Tip Top Shoes and Shoe Inn, are focusing on tried-and-true strategies and diversifying their sourcing to mitigate the impact of tariffs.

The uncertainty surrounding tariffs is also affecting vendors' outlooks. Brands like Crocs Inc. and Steve Madden Ltd. are withdrawing full-year guidance due to the difficulty in predicting short- and long-term impacts. Crocs CEO Andrew Rees noted that higher prices could lead to lower volumes, but also potentially higher margins [2]. Steve Madden has already moved some production out of China and is working with suppliers to mitigate the impact of tariffs.

As the industry awaits the outcome of ongoing trade negotiations, the focus remains on adapting to the volatile trade environment. The FDRA urges the administration to stay on a path that supports consumers, protects American jobs, and puts the footwear industry on the right track [1].

References:
[1] https://finance.yahoo.com/news/fdra-pushes-trump-relief-vietnam-193255420.html
[2] https://wwd.com/footwear-news/shoe-industry-news/ffany-trade-show-spring-2026-footwear-retail-climate-1237877431/