Watch out, Nike — according to new data by investment bank Cowen, Skechers now ranks second for American shoppers seeking casual footwear, trailing just behind Nike at 24% in its Proprietary Consumer Tracker Survey.
Customers are making the switch to Skechers from bigger and more expensive shoe brands such as Nike and Adidas as high inflation continues to plague the country. According to analysts, Skechers offers more affordable options in the current economic climate where discretionary spending has become the dominant practice. It turns out that a weaker economy is working in Skechers’ favor.
"The company looks to have taken preference from a combination of Nike and Adidas, which appears to indicate that Skechers comfort and value-oriented positioning is resonating with consumers,” they added.
Though part of the surge can be credited to millennial and Gen Z buyers who are showing more interest in the brand, the company’s growing reputation is largely due to older generations, with customers 55 or older having the greatest preference share for Skechers in 2022.
"The Skechers brand tends to resonate more with an older demographic when looking at casual sneaker preference,” said Cowen. According to company reps, Skechers is on track to reach $10 billion in sales by 2026.
"Skechers has the most efficient supply chain in our coverage," he said, "and will be in a position to meet the increased demand."
It will be interesting to see what other companies will benefit from current economic trends this 2023.