Boots and sandals stride forward - trends in casual footwear - Statistical Data Included

DSN Retailing Today, June 4, 2001

Women's casual footwear business is toeing the line, even stepping things up for many retailers. Consensus is that casual is marching ahead of other shoe categories, particularly dress models, as industry titan Wal-Mart attests.

"We had 10 percent growth in ladies' casual comparing 2000 to 1999," says Tina Odom, marketing coordinator for footwear at Wal-Mart. "Casual is growing faster than dress and becoming very important."

Odom notes this is true across the category, from tailored to rugged makes.

"Casual is the strength of the business at mass right now. There's a struggle with the dress shoe piece; casual is so much better," says Rick Gelber, senior line builder of the women's divisions at Brown Shoe Co., a retailer and wholesaler that manufactures large portions of Wal-Mart, Payless and Target private-label footwear. He's recommending fall assortments of 25 percent dress, 35 percent casual, 15 percent athletic and 25 percent boots. For spring, it's 20 percent dress, 35 percent sandals, 20 percent athletic and 25 percent casual.

Treading cautiously because of the economy, retailers and vendors are following in last year's footsteps by picking up styles that showed the most positive results.

The strength of casual is attributed to two subcategories in particular. Sandals should continue to rack up increases, while boots will keep kicking the casual category ahead. Both have cut into dress shoe sales due to a combination of tailored uppers and comfortable bottoms.

For spring 2002, sandals and so-called sandalized footwear are key--especially ones with dressy uppers and functional footbeds.

"Sequined sandals, thongs or X-straps, in ladies' and girls' sizes, did phenomenally," says Charles Mizrahi, president of Wiesner Products Inc., which produces across tiers as well as for Kmart and Wal-Mart. "For ladies, slides rule."

These styles are being updated with new fashion for spring 2002.

Clear PVC-covered sequins have been especially popular in women's footwear--and in girls' as well. Wiesner's girls' Ariel sandal with sequins was the No. 1 sandal at Disney's stores in 2000.

Gelber is also predicting that "slides, one band with stretch on a wedge," will be very popular in women's, along with closed-toe mules. These two types of shoes are also extolled by Payless, as well as Liz Claiborne and Eastman Footwear.

"Dressier looks are taking on the bulk of growth in casual, taking from dress shoe sales, dressed-up uppers with more comfortable casual bottoms," reflects Gelber.

Payless' casual Predictions line is also designed to double for work and the weekend.

"Sandalized footwear took part of the dress business in 2000 from more traditional pumps and shoes, which saw some weakness offset by sandalized dress casual categories," notes Tim Reid, director of corporate communications at Payless.

"Standalized footwear, 2000 over 1999, was one of the most explosive categories for us. On the market right now, into 2002, it is holding very steady with double-digit growth in the mid-teens," says Art Wagner, senior national sales manager and vice president of Eastman Footwear. "We've been doing private label, under the Cherokee label for Target, for the past few years. The money is best in private-label basics for us, running the gamut with core basics in suede, or high-grain and embossed leather in earth tones."

These casual Birkenstock- and Clarks-influenced leather sandals, slip-ons and clogs with ergonomic suede footbeds continue to perform at Wal-Mart as well.

For Eastman and Wiesner, there's a good market for fashion-forward beachwear flip-flops. Wiesner will cross-merchandise them with swimwear in a variety of treatments. Eastman sees clear plastic applique beads and flowers as important dressed-up details that let them double as streetwear.

Doubtlessly casual sportswear fashions have contributed to this trend of casual footwear, involving stretch uppers and the slip-on relaxed styling that's become popular yearround.

Looking at fall, boots--particularly tailored casual styles that both work better than pumps with a casual wardrobe--are doing well. Wal-Mart for one is increasing the skus in its assortment.

"Last fall, boots were strong, especially tailored, high shaft models. Consumers really wanted them, so they will be important this fall," says Reid. "Boots were really the drivers in casual, helping lead the overall increase last year."

Sales at Payless Shoe Source and Parade stores were up eight percent overall last year, with same store sales up 3.2 percent. Parade's women's assortment, which features all leather or fabric shoes at higher price points than family shoe store Payless, is being consolidated into the latter, with product that retails from $11.00 to $12.00 on average.

Boots have been a boon to business across the board.

"Boots have affected the dress shoe business; they're such a strong part of the casual business. Dress boots are taking business away from dress sales in fall, are part of why dress shoes are slow," says Gelber.