The footwear industry is undergoing a significant transformation, with legacy retailers facing challenges from tariffs, inflation, and shifting consumer preferences. As highlighted in McKinsey and Company’s The State of Fashion 2026 report, new US tariffs have reshaped trade dynamics, leading brands to reconfigure their supply chains on the fly.
Caleres, a major player in the footwear market with brands like Famous Footwear, Sam Edelman, and Stuart Weitzman, is adapting to these changes by focusing on premium products. Despite the common belief that inflation would lead to lower prices, Caleres is betting on higher-priced items and closing stores to align with evolving consumer behavior.
The company recently reported a net sales increase of 8.5% year-over-year, with its premium brand portfolio experiencing a significant growth of 20.6%. In contrast, Famous Footwear saw a decline of 2.5% in net sales, reflecting the impact of inflation on consumer spending.
Caleres has closed 82 stores over the last four years, averaging around 19 closures per year. This strategic move is part of the company’s efforts to optimize its store fleet and focus on premium brands that are driving growth in the market. By doubling down on its “elevate-and-edit strategy,” Caleres aims to increase the assortment and sales of premium, trend-forward brands like Jordan, Skechers, and Birkenstock.
While the shift towards premium products may result in a decline in Famous Footwear sales, Caleres is confident in the success of its strategy. The company plans to open 12 new stores while closing five this fiscal year, indicating a net decline of only three stores. This approach reflects Caleres’ commitment to offering consumers a curated selection of high-quality footwear options.
As the industry continues to evolve, consumers can expect to see more emphasis on premium footwear, continued store closures to refine the store fleet, increased investment in online and direct-to-consumer channels, and a shift towards higher-margin products. Despite the challenges posed by inflation and changing consumer preferences, Caleres is positioning itself for success in the evolving footwear market.
This rewritten content is based on the original article from TheStreet and provides a fresh perspective on Caleres’ strategic approach to navigating the current landscape of the footwear industry.
