Home Blog Hispanics Are Spending Less on Footwear
Jun 26, 2017

Sneakernomics: Hispanics’ Sneaker Slowdown

Subscribe to our blog

U.S. athletic footwear sales have been a puzzle this spring. While I accurately predicted the weakness due to the late income tax refunds and late Easter, the expected bounce-back simply did not happen. The sales trend was below expectations in March, April, and now May.

Looking for explanations, I went back to investigate a trend that I began to see late last year, and made a startling discovery. Sales of sneakers to Hispanics in the U.S. have slowed dramatically from the previous trend. Data from The NPD Group’s Consumer Tracking Service shows that sales of athletic and outdoor footwear to Hispanics grew in 2016 in the mid-teens, and accounted for nearly all the growth we saw last year. Hispanics represented about 23 percent of sneaker sales in 2016. Since the beginning of 2017, however, sales of sneakers to Hispanics slowed to a high-teens decline. No other cohort saw this kind of slowdown.

This slowdown accounts for a change in trend that can be measured in the hundreds of basis points. The change in shopping behavior has been significant in the disappointing results so far this year.

The channel hardest hit by this change in behavior has been shoe chains, followed by sporting goods and national chains; however, no channel was immune to the slowdown.

Looking at the results by category, work/occupational footwear sales to Hispanics improved and outdoor footwear sales stayed about the same. Performance footwear took the hardest hit, especially in the already weak basketball, skate, and running categories. Sport leisure was also markedly weaker this spring than last year.

From a brand point of view, the slowdown in purchases by Hispanics greatly impacted Vans, Nike, Skechers, and Brand Jordan. Adidas and Puma (two hot brands right now) actually strengthened.

Why has this change in behavior occurred? A recent comment from Robert Kaplan, the president of the Federal Reserve Bank of Dallas, to USA Today, may offer a clue. He said that millions of immigrants have become “more likely to save than to spend,” and this will “have some muting effect on consumer spending and therefore GDP growth.”

Whatever the reason, this change is important. My expectations for the back-to-school season and beyond are now much lower due to this Hispanic slowdown.


Stay current in your industry
SUBSCRIBE

Related Blog Posts

Tagged: Sports


Sneakernomics: The Impact of Sports Cancellations on the Sports Retail Market
Sneakernomics: The Impact of Sports Cancellations on the Sports Retail Market

Amidst the news of major leagues postponing their respective seasons due to COVID-19, Matt Powell dives into the implications these delays bring for sports retail.

Sneakernomics: Are Brands’ DTC Efforts Good for the Sports Industry?
Sneakernomics: Are Brands’ DTC Efforts Good for the Sports Industry?

Athletic footwear brands have been posting impressive direct-to-consumer (DTC) results, which have driven up their overall numbers. Is this true growth for the brand or simply a shift in retail margin dollars from their wholesale partners? The answer is, both. Matt Powell explains why.

The Internet of Fitness, Part 2: The Peloton Effect
The Internet of Fitness, Part 2: The Peloton Effect

Sports analyst Dirk Sorenson explains Peloton’s appeal, and the opportunities such media-based sports platforms present to sporting goods manufacturers and retailers.

The Internet of Fitness, Part 1: Plugging Into a New Era of Sports
The Internet of Fitness, Part 1: Plugging Into a New Era of Sports

eSports has the potential to change the way sports is perceived and pursued, and open new avenues for traditional manufacturers to create and market products. In his blog series, Dirk dives into what he considers the Internet of Fitness.

Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice. | Cookie Settings

Follow Us

© 2020 The NPD Group, Inc.