Total fashion footwear posted dollar volume sales in the U.S. of $32.3 billion, which was a 3.5% decrease over the prior year.  The overall decline was less than some other fashion markets and in the last quarter of 2009 this market posted growth of 1.8%. 

“This is the third year in a row that we have seen growth in this market during the last quarter of the year.” said Marshal Cohen, chief industry analyst, The NPD Group, Inc., “Holiday has proven to be a huge opportunity for footwear and primarily the outdoor boot business. This industry doesn’t typically think of itself as a holiday business, but the holiday results this year have again proven differently.”

Similar to results seen in the fourth quarter in apparel market, the fashion footwear market saw the return of women in the last quarter of the year.  For all of 2009, the women’s fashion footwear market finished with only 0.6% decline and when looking at a rolling 3-month trend we do see evidence of resurgence.

“While still not in the growth mode, the momentum is shifting.” noted Cohen, “In 2008, women withdrew from their footwear purchases, but in 2009, evidence of “frugal fatigue” has shown up as women began to re-enter the market.”

In addition to outdoor/all-weather boots, casual styles also contributed to the growth of the fourth quarter boot business, driven by low to mid heeled, high shaft styles that complemented key apparel trends such as leggings and skinny jeans.   The other major boost for the women’s fashion footwear market came from the walking category.  Driven by the toning/shaping segment, walking grew 33% annually and over 100% in fourth quarter.

Some of fashion footwear’s success can also be found when taking a look at where consumers made their footwear purchases. This year, again, online sales take the lead in channel growth as it posted a double digit growth rate of 18.1%.  Second to that was the sporting goods channel, due in part to the trend mentioned earlier in the outdoor boot business as well as contributions made by the increasing popularity of sport leisure styles.

“Overall fashion footwear showed growth this past year,” said Cohen, “and I do see some promising signs for the future.”

“NPD Reports on the 2009 Fashion Footwear Market,”  The NPD Group.  Web.  4 Mar. 2010.

While marketers wait for consumers to return to familiar spending patterns, economists and analysts predict that a new and long-term shift has disrupted the marketplace. This outlook is based both on  consumer surveys of upper income families and analysis of income pressures on the middle class. A closer look at these numbers can help marketers determine the best way to position their goods and services.

One gauge of how well the economy is doing is the daily spending pattern of upper-income households. A recent Gallup Poll reveals that  households earning over $90,000 annually spent as much as $185 a day  in ”stores, restaurants, gas stations, and online” in January 2008. During the recession those numbers dropped and never reached more than $136 a day in January 2009. And in January 2010, that same demographic group was spending only $98 a day in those same categories. Gallup Poll analysts note that this group has more disposable income and access to credit than other consumers and until the higher-income households feel confident and begin spending, any recovery will be muted.

Pressures on middle-class incomes are also contributing to consumer caution. A report in The New Strategist highlights economist concerns about the drop in income for consumers in what had traditionally been peak earning years. For example, the median household income of consumers between the ages of 45 and 54 in 1978 was $64,152. That figure rose until 1998 reaching $71,429 but since then has dropped to $64,349 meaning that the middle-class is treading water. But for men, the traditional wage earner, the numbers are even more grim. The 45 to 54 year old age group has watched median income drop from $61,698 in 1978 to $53,331 in 2008.

Regardless of the causes of pressure on incomes, ranging from unfair taxation structures to economic globalization, consumers will continue to be cautious for the long-term. Marketers would do well to emphasize the value in the goods and services in order to win the business of the newly cautious consumer.

[Sources: Jacobe, Denise. Upper-Income Spending Drops to New Low in February. The Gallup Poll. 8 Mar. 2010. Web. 19 Mar. 2010;  The Decline and Fall of the Nation’s Peak Earners. The New Strategist. 11 Feb. 2010. Web. 19 Mar. 2010]

A recent Kansas State University study found that the availability of supermarkets – rather than the lack of them – increased the risk of obesity for low-income women living in small cities. This suggests that policies to increase healthful eating behaviors might need to be tailored based on geographic location.

“This study was one of the first to look at supermarket availability across the urban-rural continuum, and the findings suggest that policies to increase healthful food availability may need to differ depending on urban influence,” said David Dzewaltowski, K-State professor and department head of kinesiology.

Research has shown that a lack of nearby food stores that offer healthful items contributes to higher incidences of obesity for consumers. Studies also have shown that low-income residents have an improved quality of diet when larger grocery stores and supermarkets are available. That’s because these stores often supply consumers with healthful foods at a lower cost compared to small grocery and convenience stores.

“Previous research assumes that most people shop within their own census tract or ZIP code,” Ford said. “However, other studies have found that most people shop outside of their census tract. By examining the number of stores within a 1- to 3-mile radius of these women’s homes, we were able to get a more accurate and realistic assessment of supermarket availability.”

The study included only socioeconomically disadvantaged women because they are at greater risk of obesity than are wealthier women. They also are likely to be more dependent on nearby grocery stores and supermarkets because of limited transportation options and fewer economic resources, Ford said.

The findings showed significant geographic disparities regarding the availability of supermarkets. However, the majority of the women lived within 1 mile of a small grocery store. Dzewaltowski said this is important because previous studies have indicated that rural areas are food deserts where low-income residents have to travel far to access healthful foods.

The number and types of stores available differed in the metropolitan, micropolitan and rural areas. Rural low-income women had 74% fewer supermarkets and 55% fewer small grocery stores available within a 1-mile radius as compared to women in metropolitan areas. Yet the number of convenience stores per 10,000 residents was highest in rural areas.

The researchers also looked at how the availability of different food stores contributed to area residents’ obesity. They found that the availability and density of food stores was not associated with obesity in metropolitan and rural areas. However, contrary to previous studies, the findings showed that the presence of a supermarket is not protective against obesity for women in these areas. Women who resided in micropolitan areas in Kansas had an 18% increase in obesity risk when living within a 1-mile radius of a supermarket. The presence of small grocery and convenience stores also was associated with an increased risk of obesity.

Dzewaltowski said the findings indicate that the choice of supermarkets may be a more relevant issue than the availability of supermarkets. The findings also suggest that most of the low-income women reside within the urban cluster of the micropolitan areas and are likely to be exposed to multiple fast food restaurants and other high-caloric density eating opportunities, which are often absent in rural areas.

The researchers said policies that increase the accessibility of healthful foods at small grocery stores might be a promising strategy for reducing the higher prevalence of obesity in rural areas.

David Dzewaltowski, Paula Ford.  Kansas State University Study.  Jan. 2010.  n. pag. Web. 9 Mar. 2010.

The fifth edition of Power of Meat, a study released recently by the American Meat Institute and the Food Marketing Institute, has found that the recession is continuing to impact food purchasing and consumption behavior, including the meat department.

While the volume of meat consumed in 2009 was up significantly, dollars were lagging as shoppers opted for cheaper cuts and prices dropped during the year, the study said.

Forty percent of shoppers say they have changed the way they purchase meat and poultry compared to before the recession, down from 51% in 2009. This is also significantly less than the 50% who are spending less on groceries overall, signifying the strength of meat and poultry in the total food consumption.

Sixty-two percent of shoppers who saw a significant drop in household income have altered their meat shopping. More customers are also cooking at home versus eating out, leading to an increase in meat purchases at supermarkets and other retail outlets.

“Power of Meat,” conducted by the American Meat Institute and the Food Marketing Institute, Nov. 2009.  Supermarket News, Web. 8 Mar. 2010.