- The US Footwear market is a USD 25 Billion market consisting of over 1500 wholesales and 30,000 retail outlets. However, the retail segment is highly concentrated and the largest 50 chains account for over 80% of revenue.
- In the UK the footwear industry is approximately GBP 6.1 Billion, but account for only 6% of the total consumer spending – the lowest proportion in history.
The above statistics definitely give an indicator of the challenges that a small and medium footwear retailer faces in today’s tough economic conditions.
Fast changing fashion trends, an extremely cost sensitive consumer, stiff competition from departmental store with well appointed shoe departments; discount shoe stores and outlets, as well as general merchandise discounters such as Wal-Mart, exert additional pressure on the footwear retailer to remain competitive.
Trade regulations aside, retailers heavily rely on imports from Far East at extremely competitive prices. Not only is the logistics of delivery critical, it is equally important to source the right mix of style, size and color. Ability to collate, analyze and act on consumer buying patterns, sales trends and changes in fashion industry are imperative to succeed in the footwear industry.
A Footwear Retailer is faced with the challenge to:
- Keep in touch with the fashion industry – ensuring that the stores have the right mix of styles, colors and sizes
- Manage inventory levels cautiously and judiciously
- Periodically run promotions & campaigns to increase footfall and decrease slow moving items
- Remain closer to the consumer and analyze his buying patterns and sales trends
Such a balance requires an integrated business management solution that allows flexibility to cater to the diverse & unique demands of Footwear Retailers. A system that seamlessly integrates all business processes from the POS at store to the planners at the Head Office lowering the overall cost of operations, simplifying expansion and enabling the Footwear Retailer maintain his unique proposition and positioning.