HERE’S WHY SHOE PRICES ARE SURGING AT THE HIGHEST RATE IN TWO DECADES

According to the new data released by the U.S. Bureau of Labor Statistics, consumer prices in September 2021 rose by 5.4% when compared with last year, with shoe prices increasing by 6.5%. Specifically, men’s shoes increased by 5.5%, women’s by 4.9% and children’s shoes by 11.9%. However, this is not a one-off event. It is reported that shoes have been rising in price for a number of months; by 4.6% in July and by 5.1% in August. All of this amounts to the price changes of products we know and love. For example, a pair of classic white Nike Air Force 1’s now cost £99.95.

There are a few key reasons for the sneaker price surge, noted by The Footwear Distributors and Retailers of America (FDRA). 

The first is a rise in wages for retail employees. The pandemic has turned the world upside down along with everything in it – including the labour market. To counter substantial labour shortages, employers are offering bonuses and higher wages as perks to keep hold of their workers. Thus leading to higher retail prices for products like sneakers.

The second aspect to consider is an increase in import charges and duties required for deliveries, which are especially felt in regards to trade with China.

The final reason outlined by the FDRA is the global shortage of rubber and plastic, both of which are fundamental materials in the production of sneakers. With limited access to these materials, shoe companies and their factories are struggling to produce enough supply to meet consumer demand. Footwear News reported that in some cases, companies are even sitting on millions of dollars worth of inventory because they don’t have access to the materials required to complete production.