FDRA Survey: Tariffs Biggest Business Headwind
A large majority of Footwear Distributors and Retailers of America members said their costs of imported shoes will climb in 2026, at a time when many consumers are pulling back on purchases.
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About 36% of respondents said government actions are their biggest problem, with another 20% saying "all of the above," including tariffs, retail pricing, inventory, labor issues, supply chain costs, and consumer behavior shifts.
Their projections for higher retail costs are lower than the increases in landed costs some importers are expecting. About 40% said their costs would increase less than 10% but a quarter said their costs would increase by between 11% and 20%, with only 4% saying their costs will go up more than 20%. About 11% said they don't know how their own costs will change in 2026.
Nearly a quarter of FDRA members said they expect to hike prices on shoes by less than 5%, and about 30% said they expect to hike prices by 5% to 10%, the survey found. Only 13% said they will see no increase in their imported goods, and therefore will hold prices steady. Fifteen percent said prices would rise more than 10%.
The increase in costs isn't just that importers are paying higher tariffs; it's also higher sourcing costs and logistics costs, the survey found.
The survey "reinforces what we've been hearing privately for months. The full cost of the tariff increases has not yet hit the industry, and executives are beginning to model significantly higher landed costs for 2026," the group wrote.