Footwear Insight

By Alan Miklofsky I n a year marked by persistent ination, uctuating consumer condence, and the uncertain eects of tari policy changes on imports, independent footwear retailers are doing what they've always done best: adapting with agility and determination. From sourcing shis to pricing strategies, independents across the country are nding creative ways to preserve margins, retain loyal customers, and maintain operational health—even as wholesale costs and overhead continue to rise. Here's how savvy retailers are (or might be) responding to today's economic pressures and what lessons others can learn from their approach. Sourcing Smarter Amid Tariff Uncertainty Footwear retailers who source a signicant portion of their inventory from China have been particularly aected by the ongoing ebb and ow of tari regulations. While some duties were rolled back earlier this year, many retailers had already taken preemptive action. Some retailers started diversifying their brand mix years ago, leaning into European and brands, which are not subject to the same taris or pricing issues as Chinese imports. Some independents are now in closer con- tact with vendor reps and brand executives to request more clarity on country-of-origin labeling, expected lead times, and cost struc- ture shis. Others have started working with smaller domestic brands or niche importers who can oer exibility and faster fulllment. Value Over Volume: Adjusting the Assortment Rather than ooding the sales oor with a wide array of SKUs, many retailers are concentrating on proven sellers and layering in value-rich new items selectively. It's not about buying less, it's about buying smarter. is approach allows stores to maximize their open-to-buy budgets while staying within cost boundaries—even when vendor prices increase. Limiting assortment bloat also helps reduce the need for drastic markdowns later in the season. Transparent Pricing and Educated Selling Higher price points are now common across most categories of footwear. But consumers are more understanding than they once were—if the value is clearly communicated. Retail sta at successful independents should be coached to explain why a pair of comfort shoes might now retail at $160 instead of $135. Instructed to talk about better footbeds, more durable outsoles, or supply chain issues that raised the cost, customers appreciate honesty more than a vague answer. In-store signage, newsletters, and even Instagram posts have been used to proac- tively explain pricing changes and highlight products that oer longevity, sustainability, or improved support. Back-End Discipline Pays Off Margins aren't only preserved through front-end sales. Many retailers have taken a hard look at their operational expenses. at includes negotiating lower freight and lower credit card processing fees, reducing backroom overstock, and cross-training sta to ll multiple roles. Retailers might implement new inventory tracking soware that cuts their mismatch rate in order to protect thousands of dollars in potential lost sales. Other retailers might decide to downsize their store count, or focus their digital advertising spend (in an eort to, improve sales and produce a year-over- year revenue gain). The Role of Vendor Collaboration Taris and ination are squeezing vendors too, but retailers who maintain strong part- nerships are getting more support. Whether it's improved co-op advertising terms, early access to markdown dollars, or favorable payment schedules, those relationships matter. Conclusion: Flexibility, Honesty, and Strategy Footwear retailers cannot control global policy shis or inationary trends. But they can control how they respond. e most successful independents are being proac- tive—not reactive—by prioritizing core items, staying lean on expenses, communicating openly with customers, and leveraging vendor partnerships. eir message is clear: economic pres- sure isn't fatal—it's a signal to think more strategically. And in that shi, there is both survival and strength. n RETAIL RESILIENCE: HOW INDEPENDENT STORES ARE WEATHERING INFLATION AND TARIFF PRESSURES BUSINESS INSIGHT Alan Miklofsky is a semi-retired Professional Shoe Dog with a distinguished career in the footwear industry. Over the decades, he successfully ran an award-winning shoe business while dedicating 29 years to the National Shoe Retailers Association (NSRA) Board of Directors, including serving as Chairperson from 2009 to 2011. Today, Alan channels his expertise into creating content on issues vital to independent shoe retailers and oering consulting services with a focus on nancial oversight. Learn more about Alan Miklofsky online at: https://sites.google.com/view/alanmiklofskypersonalwebsite/alan-miklofsky • https://www.linkedin.com/in/alanmiklofsky/ 36 • Footwear Insight ~ July/August 2025 footwearinsight.com TARIFFS AND INFLATION ARE SQUEEZING VENDORS TOO, BUT RETAILERS WHO MAINTAIN STRONG PARTNERSHIPS ARE GETTING MORE SUPPORT.

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