Footwear Retailing in Australia - Industry Market Research Report

On the Wrong Foot: Strong Competition Has Booted Many Smaller Players Out of the Industry

Consumer spending trends influence footwear retailers, which is why the COVID-19 pandemic has disrupted and transformed the industry. Footwear purchases traditionally depended on a tactile experience, but this was largely impossible during lockdowns with physical stores temporarily closed. Online-only stores - and their convenience - met the bulk of consumer demand during these spells, intensifying industry competition. The ability to browse endless shoe options and return unsuitable items without incurring additional postage costs has appealed to consumers. Faced with plummeting instore sales, traditional footwear retailers developed online platforms to capitalise on the pandemic-induced online shopping boom. Solid support from online sales and rising disposable incomes have contributed to revenue growing at an annualised 4.5% over the past five years, expected to total $4.8 billion in 2022-23. This includes an anticipated 10.7% leap in the current year, defying cost-of-living crunches because of revenge spending in the pandemic's aftermath and skyrocketing inflation.

Industry firms primarily retail footwear. Retailers typically purchase a variety of footwear from wholesalers and manufacturers to onsell to consumers. Generally, retailers do not perform value-added activities or make any alterations to products. Most retailers in the industry sell their products from one or more shopfronts and may also operate an online store. The industry excludes department stores and online-only retailers.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.