Sales have been dropping. Production has been decreasing. Unemployment has been increasing. That is why footwear entrepreneurs have called for Trump’s support. In fact, the pandemic is negatively affecting US footwear industry: according to estimates, throughout 2020 sales will expectedly go down by 20% to 40%.
A downturn in sales
According to NPD, in April in the United States earnings from footwear sales amounted to 1.2 billion dollars, therefore slumping by 56% compared to the same month of 2019. As reported by Footwear News, Beth Goldstein (NPD financial analyst who specializes in shoes and accessories) claimed that “fashion footwear sales have been dropping again beyond average. In contrast, slipper sales have doubled compared to April 2019 and have increased by 12% compared to March”. Furthermore, “despite a downturn in sales compared to April 2019, lifestyle sneakers and sport plimsolls have been going better compared to March. The same applies to work shoes, which have enjoyed a positive trend as well”.
100,000 jobs
Because of the pandemic, so far over 100,000 employees have lost their job activity in the footwear industry. According to a survey, carried out by FDRA, the association of footwear distributors and retailers of America, 70% of footwear managers expect sales to drop by 20% to 40% throughout 2020. As regards the supply chain, it will supposedly go back to normal in six months or more. While dealing with such scenario, footwear industry decided to ask President Trump for help. US footwear distributors and retailers wrote a letter to request a postponement of deadlines for the payment of taxes and duties imposed on imports. “In so doing, US footwear manufacturing companies could benefit from availability of capital assets, which they could use to keep working and, therefore, preserve job positions in the United States”, pointed out President and Chief Executive Officer Matt Priest while talking to Footwear News.
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