Footwear revenue decline: 10 consecutive months in the red

Spanish footwear sector posts tenth consecutive month of revenue decline

The Spanish leather and footwear industry is still not hitting bottom. According to data from the National Statistics Institute (INE) for May 2026, the sector's business turnover index (ICN) registered a 5.9% decrease compared to the same month last year. This figure marks the tenth consecutive month in negative territory, a streak that has become the longest in recent years. The general industrial ICN, on the other hand, grew 10.4% in the seasonally and calendar-adjusted series, widening the gap between footwear and the rest of the manufacturing sectors.

The INE's continuous survey, which examines over 11,000 industrial establishments nationwide each month, reflects a trend that worries manufacturers, wholesalers and retailers. The accumulated decline is not due to a single factor, but to a combination of inflationary pressure on consumption, changes in household spending priorities and growing competition from low-cost imported products. Moreover, the general macroeconomic context, with interest rates still high despite recent cuts, continues to curb demand for durable and semi-durable goods such as footwear.

Implications for footwear stores and wholesalers

For a retail footwear store, ten months of sector-wide revenue decline translate into an inescapable reality: the end customer is buying fewer pairs and, when they do, they look for tighter prices or promotions. This forces a rethink of the assortment policy, prioritizing categories with higher turnover and reducing orders for deep collections that could generate dead inventory. It is also time to strengthen the value proposition: after-sales service, personalized advice and loyalty programs can make a difference against low-cost competition.

For a wholesaler, the scenario is even more complex. Falling demand pressures margins and forces careful management of stocks and payment terms. Those who work with domestic manufacturers feel the contraction especially, since local production tends to have higher costs than imported goods. That is why many wholesalers are opting to diversify their supply sources, combining quality domestic product with import collections to cover the mid-to-low range. They are also exploring new sales channels: marketplaces, direct sales to retailers through B2B platforms, or even sales to small shops with special deferred payment conditions.

The streak of ten consecutive months of decline forces wholesalers and retailers to be much more surgical in stock management and to seek sourcing alternatives that maintain profitability.

The Spanish market context: resist or reinvent

Spanish footwear has historically been a benchmark in quality and design, with important clusters in Valle del Vinalopó (Alicante), La Rioja and Menorca. However, the continued revenue decline reflects that the traditional competitive advantage is eroding. Production costs in Spain have risen due to higher prices of raw materials, energy and labour, while competition from Asian countries – with very aggressive prices and increasingly shorter delivery times – gives no respite.

In this context, defensive strategies are not enough. Wholesalers with a long-term vision are investing in digitalization of their catalogs, automation of order management and data analysis to anticipate trends. They are also strengthening their presence at international fairs and industry events, such as MICAM or Momad, to attract customers outside our borders. Export continues to be a growth path for those who manage to position themselves in European or Latin American markets with differentiated products.

On the other hand, independent retailers are seeking alliances with suppliers that offer flexibility: small batches, quick replenishments and payment terms that ease cash flow. The wholesaler that can adapt to these demands – with an efficient digital platform and agile service – will have a better chance of keeping their customer portfolio active.

What to expect in the coming months?

Leading indicators, such as the consumer confidence index or sales in large stores, do not point to an imminent recovery. Summer may provide a seasonal breather, but the underlying trend will remain flat or slightly negative until domestic consumption picks up. Experts suggest that 2027 could be a transition year, provided that interest rates continue to fall and inflation stabilizes around 2%. Until then, prudence in purchasing management and the search for efficient suppliers will be key to survival.

For industry professionals, staying up to date with these figures and understanding their impact on the supply chain is essential. Information is power, and in a contracting market, every sourcing decision counts.

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