May slump: the footwear industry halts its recovery

The textile and footwear industry retreats in May

The Business Turnover Index (ICN) for the textile and clothing sector in Spain has returned to negative territory during the month of May, breaking the upward trend that had begun in spring. According to official data, footwear has worsened its decline compared to previous months, although the accumulated balance for the year still remains at figures similar to those of 2023. This slowdown in recovery poses a new challenge for the entire value chain, from manufacturers to final points of sale.

The macroeconomic context remains marked by persistent inflation and uncertainty in consumption, which is particularly affecting the fashion and footwear sectors, considered non-essential goods. Despite the fact that March and April had shown slight improvements, May has brought back the negative trend, forcing a reassessment of expectations for the second half of the year.

What does this news mean for a footwear store?

For a retailer, the drop in the ICN is a clear sign that demand remains weak. In this scenario, smart stock management becomes critical. Some practical recommendations:

• Prioritize timeless and basic collections that ensure turnover, rather than fleeting trends that may end up in the warehouse.
• Review orders in advance and avoid committing to large volumes without guarantee of exit. Negotiate extended payment terms with suppliers.
• Strengthen digital communication to attract customers looking for offers or added value (quality, durability) instead of quantity.
• Consider clearance strategies or staggered promotions to move accumulated stock before the winter season.

In a down market, differentiation through service and in-store experience can make a difference against competition that only competes on price.

Repercussions for the footwear wholesaler

Wholesalers, as the intermediate link, feel the pressure twice: on one hand, retailer demand contracts; on the other, manufacturers adjust their production and prices. In this context, flexibility is key. Some lines of action:

• Diversify the client portfolio: seek new channels such as online stores, outlets, or secondary markets that still maintain some dynamism.
• Optimize logistics and operational costs to maintain margins in the face of possible price reductions.
• Offer favorable conditions to loyal retailers, such as reduced minimum lots or short-term financing, to build loyalty and prevent them from seeking other suppliers.
• Anticipate trends for fall-winter by analyzing sales data from previous campaigns and consumption behaviors during recession (durable shoes, basic children's footwear, etc.).

The wholesaler that manages to adapt quickly to this volatility will not only survive but will also be able to gain market share when the recovery arrives.

Context of the Spanish market: a worrying trend

The evolution of the textile ICN in Spain reflects a pattern that repeats in other European economies: after a spring uptick, demand weakens again due to loss of purchasing power and consumer preference for saving. In the specific case of footwear, competition from low-cost platforms and the rise of second-hand are also eroding sales of the traditional channel.

The accumulated balance for the year barely varies, indicating that the sector remains at a low but stable level, with no signs of collapse or significant upturn. This forces footwear players to operate with very tight planning, avoiding unnecessary risks.

"The key is not to let your guard down with the green shoots of spring. May reminds us that uncertainty remains the norm and that operational flexibility is more valuable than ever."

— Analyst at Calzados JAM

In this environment, collaboration between wholesalers and manufacturers becomes essential: sharing demand information, adjusting delivery schedules, and jointly exploring new channels (marketplaces, direct-to-consumer sales with dropshipping, etc.) can reduce the impact of ICN drops.

Conclusion: preparing for an uncertain second half

The return to negative of the ICN in May is a wake-up call for the entire footwear industry in Spain. Expectations of sustained recovery are fading, and both stores and wholesalers must make decisions based on prudence and agility. Managing stock well, maintaining liquidity, and strengthening customer relationships will be key to weathering the storm.

If you are a retailer looking for a wholesale partner that understands these dynamics, at Calzados JAM we offer updated catalogs and flexible conditions to help you navigate the uncertainty. Looking for a wholesale footwear supplier? Register at CalzadosJAM →