Tariffs, Price Hikes, and the Hidden Cost to Retail Shoe Stores

By Alan Miklofsky | May 28, 2025

Tariff increases on imported footwear, whether implemented or looming, have one clear result: wholesale prices go up. For independent shoe retailers, this presents an uncomfortable fork in the road. Either they absorb some of the cost, compressing already narrow margins, or they raise retail prices and risk losing sales. Most will choose the latter—because they have to.

But even when the same number of customers walk through the door and stores appear to maintain volume, there's a deeper cost that’s too often overlooked. Higher prices will inevitably "price out" some customers. They won’t necessarily stop buying shoes altogether—but they may buy one pair instead of two, or delay their purchase until absolutely necessary.

And when fewer units are sold, there's a downstream effect: fewer opportunities for add-on sales. Fewer insoles. Fewer performance socks. Fewer leather conditioners and waterproof sprays. These are the incremental items that boost basket size and fuel profitability. They also help customers get more value and longevity from their purchases.

The risk here is subtle but serious. Revenue may look stable at first glance, but margin contribution from accessory sales could quietly erode. Over time, this challenges the very foundation of what helps independent stores differentiate themselves: expertise, personalization, and offering complete solutions for customers’ needs.

We can’t stop global trade disputes, but we can be honest about the consequences. Tariff-driven price hikes hurt more than just the price tag—they chip away at the overall experience and economic viability of serving the customer well.

If we want to keep Main Street shoe stores thriving, and not just surviving, it’s time for vendors and policymakers alike to understand the ripple effects. Price elasticity doesn’t just affect whether someone walks away—it changes what they leave the store with.