Caleres shuttering Famous Footwear outlets as consumers pivot to premium brands
Inflationary pressures and shifting consumer habits prompt an “elevate-and-edit” strategy, with 82 stores closed over four years and further fleet optimisation planned for the current fiscal year.
Caleres, the US-based footwear retailer behind the Famous Footwear, Sam Edelman, and Stuart Weitzman brands, has closed 82 Famous Footwear locations over the past four years and three months. The closures reflect a strategic pivot away from affordable, lower-margin products as inflation-pressured consumers trade up to higher-priced, premium brands.
During its most recent quarter, the company reported an 8.5% year-on-year increase in net sales, reaching $666.6 million. This growth was largely attributable to its premium portfolio, where net sales surged by 20.6%. In contrast, the more affordable Famous Footwear segment experienced a 2.5% decline in net sales, highlighting the divergent performance across its brand tiers.
The shift in consumer behaviour has been accelerated by rising inflation, which has squeezed everyday spending. Caleres President and Chief Executive Officer John Schmidt noted that while trends improved leading into Easter, accelerated inflation significantly pressured consumer traffic and sales from April onwards. This environment has prompted shoppers to prioritise personal well-being and longevity over traditional mall impulse buys, altering the demand landscape for legacy retailers.
To adapt, Caleres is implementing an “elevate-and-edit” strategy designed to optimise its store fleet and product assortment. Within the Famous Footwear segment, sales of elevated products increased by nearly 50% in the quarter, with penetration reaching almost 20%. The retailer has expanded its inventory of premium, trend-forward brands such as Jordan, Skechers, Birkenstock, New Balance, Reef, and Brooks, while reducing emphasis on value-oriented categories.
Looking ahead, Caleres plans to close five additional Famous Footwear stores this fiscal year while opening 12 new locations, resulting in a net decline of three stores. The company ended the reported quarter with 812 stores, down from 894 at the end of 2021. Management expects Famous Footwear sales and comparable sales to continue declining this year, offset by increased investment in online and direct-to-consumer channels to maintain efficiency.
