Sales sink fashion and footwear prices 10.2% in July: what does it mean for the B2B channel?

Deflation in footwear: a phenomenon beyond sales

July CPI data confirm what many retailers in the sector already suspected: pressure on clothing and footwear prices has intensified. The monthly index for these products plunged 10.2% in July, a decline largely explained by the seasonal effect of sales, but it is not a mere mirage. The year-on-year comparison shows a 2.2% drop in fashion and footwear prices, in stark contrast to the general CPI, which rose 3.6%. In cumulative terms, since January 2026, the decline reaches 13.5%.

This behavior is not new in the sector, but its magnitude is. The 2.2% year-on-year drop is not solely explained by the promotional calendar, but by a combination of structural factors: excess stock accumulated in wholesale warehouses, competition from low-cost operators, and weak consumption in certain population segments. For the B2B channel, this deflation translates into narrower margins and the need to rethink purchasing and replenishment strategies.

When the retail price falls more than the acquisition cost, the weakest link in the chain ends up absorbing the adjustment. That link is usually the independent retailer.

What this drop means for a footwear store

For the retailer, the first reading is obvious: the consumer is used to buying with a discount, and the margin window narrows. But there is an important nuance. The 13.5% cumulative drop so far this year does not imply that all products have fallen equally. Seasonal items, such as sandals or espadrilles, have suffered the most promotional pressure. Mid-season collections, on the other hand, maintain more stable prices. The recommendation for the retailer is clear: diversify the assortment towards timeless, fast-moving products, and negotiate conditions with the supplier that allow maintaining an acceptable margin without relying on constant promotion.

Another side effect is the perception of value. When the market is flooded with offers, the customer assumes that the "normal" price is what they see in sales. This forces the store to better communicate the differential value of its product: quality, service, advice, experience. Competing only on price is a race to the bottom, especially for independent retailers.

Impact on the wholesaler: pressure on stock and logistics

For the wholesaler, the situation is doubly complex. On one hand, deflation at the point of sale translates upstream into demands for better purchase prices. On the other, excess stock that accumulates in warehouses when sales do not keep up forces liquidation at very low prices, which deteriorates profitability and the brand's perceived value.

The key lies in proactive season management. Wholesalers that work with firm orders and planning adjusted to real demand suffer less pressure. Those that operate with continuous replenishment and opportunistic purchases must be very agile in inventory management. The recommendation is clear: reduce procurement cycles, bet on capsule collections, and maintain fluid communication with retailers to adjust production to real demand.

In the context of the Spanish market, this deflation occurs in a scenario of general economic uncertainty. The general CPI rises, but the footwear consumer is reluctant to pay high prices, especially in non-essential fashion categories. This explains why large retail chains strengthen their low-price lines, while the independent channel seeks differentiation through service and product.

Strategies to navigate the deflationary environment

• Review discount policy: instead of aggressive sales, bet on targeted promotions and loyalty programs that maintain perceived value.
• Negotiate more flexible payment and delivery terms with the supplier to reduce the cost of financing stock.
• Diversify the assortment towards categories with lower seasonality, such as safety footwear, orthopedic footwear, or sustainable lines.
• Use sales data to anticipate trends and avoid surplus that later has to be liquidated.
• Explore complementary sales channels, such as online outlet or the second-hand market, to clear excess without cannibalizing the physical store.

In short, the price drop reflected in the CPI is not good news in itself, but it is a symptom of a reality that the sector must manage intelligently. Efficiency in the supply chain, product differentiation, and customer loyalty are the tools that will allow stores and wholesalers to maintain profitability in a falling price environment.

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