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Shop Talk/RUNNING RETAIL
Retail Outlook 2025
Ted’s Shoe & Sport, Keene, NH.
The holiday season is fast approaching. 2025 is just around the corner. As the running business races ahead, we paused to take a breath and check the pulse of the market, reaching out to garner opinions from retailers about issues that are top-of-mind. We asked about their respective optimism about 2025, thoughts on current innovation trends, and input on key topics such as supply and demand and product pricing.

For sure, the industry has had a phenomenal last decade. According to data in the soon-to-be published Tracking the Fitness Movement research report from the Sports & Fitness Industry Association (SFIA), total American participation in running, treadmills, and trails rose by 17.2 percent between 2013 and 2023, or 13.7 million, to 93.2 million in 2023. Total U.S. participation in these three activities peaked in 2019, ahead of the pandemic’s start, at 95.2 million.

Here’s what four different retailers told us about three key issues.

Athletic Annex, Indianapolis, IN.

1. What are you most optimistic about when it comes to the run business for 2025? Any major concerns?

“I’m most excited about the fact that everyone is making great products for 2025,” comments Justin Porter, a co-owner of Indianapolis-based run specialty retailer Athletic Annex. “It’s really encouraging to see the level of innovation and quality in the running industry. I’m also eager to see how customer trends will evolve over the year and where they will take us.”

“We are in a position to deliver great customer service as our staff gains more hands-on experience with all the different brands, we carry,” says Chip Hansen, manager at Mitten Running Co. in Portage, MI. The owners of V&A Bootery, an independent footwear retailer with more than 100 years of history, opened specialty run shop Mitten Running Co. in 2023. “We have a large running community in our area, and we have made great strides in gaining its trust and also allowing them to start some of their training runs from our store. We also feel that athletic footwear sales will increase in 2025. Our store name is getting out more and more and we have seen a steady increase in returning customers. With these types of partnerships, we can only be optimistic for 2025. The goal is to try and partner with more businesses with similar synergies. We will look for more opportunities in the coming year.”

Ted McGreer, owner of Ted’s Shoe & Sport in Keene, NH, tells us that running footwear offerings have never been better. “The good news is that every brand is making really great product now,” he says. “It’s not just a two-horse race anymore. Consumers have a lot of good options to compare in retail stores as opposed to just four years ago when certain brands dominated market share.”

As for concerns, McGreer has a few. “We still need to even out the inventory playing field as it relates to DTC vs B2B,” he says. “And run retailers need to have access to products available on the brands’ DTC sites.”

The running category “continues to achieve new milestones for Tradehome Shoes,” Justin Kehrwald, president and CEO of the Cottage Grove, MN-based business tells us. A 100% employee-owned footwear retailer, Tradehome Shoes has more than 130 retail stores in 27 states, and performance running is a significant and growing part of the retailer’s business. “We are confident in the variety and depth of key products from several leading brands. Maintaining pricing integrity will be a priority as brands expand their offerings across various distribution channels.”

A look inside Mitten Running Co.

2. What are your thoughts on the current handling of issues such as supply and demand and product pricing by performance running brands?

“We’re a fan of product pricing, and the way in which brands are handling holding MAP,” says McGreer. “However, if we’re asked to hold MAP, brands should be holding it as well with their DTC. Brands should not be offering 20% off pop-ups and emailing our customers coupons and discounts. That is counterproductive. Supply and demand has improved dramatically. We’re able to, for the most part, get the product we need, when we need it most.”

Athletic Annex’s Porter tells us that brands have “handled their supply chain issues relatively well since Covid.” He adds that while there “have been some hiccups” with some brands’ software system changes and warehouse transitions, for the most part, “if your futures were written well, you probably didn’t feel this impact as much as those retailers that rely on at-once for most of their business.”

Pricing remains a significant concern, Porter says, as rising costs are affecting various products and “consumers are becoming increasingly price conscious.” He notes, “We’ve observed that the price increases have impacted add-on sales to some extent. Additionally, the abundance of high-quality products from all the new brands that surface every day is adding some competition in some categories.”

At Tradehome, Kehrwald says, “We rely on prebooking and internal redistribution of products to mitigate reactionary inventory concerns. The brands demonstrating a commitment to clean pricing will continue to earn priority in our assortments.”

Diversifying the store’s selection of running shoe categories and brands has been a focus for Mitten Running Co. “This was a strategy we developed through the tough Covid times,” says Hansen. “It has served us well to get ahead of what our running customers are asking for.”

Installing a Foot Balance 3D foot scanner “with the opportunity to make custom insoles in a matter of minutes,” has also been a boon for Mitten Running Co. “With a 3D scan to start our fitting process, it immediately gives us credibility. We can determine what category of shoe to fit someone right away. Whether it be Max Cushion, Cushion, Cushion to Structure or Motion Control, we have all feet covered. This allows us to pivot to different brands to see what the optimum fitting shoe will be for our customer. We can then talk over any pricing concerns and adjust to a different brand as needed. We have not yet been faced with too many questions on prices. For the most part, our customer base understands and is willing to get into the correct running shoe that has been selected for them at whatever cost it may be.”

Tradehome Shoes Staff.

3. Where do you see the most innovation happening in the run industry? Is max cushioning still a growing sales driver for footwear, or has it peaked?

“Innovation is still going to be coming from the conversation around foam,” says Porter, who adds, “I think max cushioning is slowing down. That seems to be what we are hearing on the sales floor. So, as the story goes the pendulum will swing back to the middle and we will apply what we have learned through this max cushioned phase and have a new middle of the road that is for everyone.”

“We’re seeing more and more brands utilize super critical foams which shows midsole technology is still leading the way with respect to innovation,” opines McGreer. “As for max cushioning, we were surprised to see midsole stack heights get even higher for SS25, as we’re starting to hear consumers ask for firmer, or less stack under foot. Brands like On and Brooks have several styles which have resonated with consumers wanting less cush and stack.”

“We are seeing a great deal of push for carbon-plated super shoes,” says Mitten’s Hansen. “We also see this technology entering the everyday trainer category. I for one am not totally sold on this idea. I have watched a great deal of running reviewers and podiatrists talk about this type of technology and it has mixed reviews. The concern is what is happening with the reverberation that comes back up the leg into the knee and joints up the chain. Studies are showing an uptick in knee injuries from the super shoes. In my mind, this would be a shoe for not our everyday runner, but that person that is a few minutes away from Boston qualifying times, and possibly searching for some way to qualify. The middle of the pack runner will not see a tremendous upside to a super shoe and might possibly be better off in their everyday trainer for a marathon distance.”

Hansen adds, “We continue to see stack height go up in the Max Cushion category. We see a great deal of change in the foams as well. I feel that moving forward we will see a return to less cushioning but possibly a more super critical type of foam (Pebax) to give a bounce feel to the customer. We are seeing supercritical foam and EVA foam being layered together right now to give stability to running shoes. I truly feel that the brands will have to take a closer look at ‘drop’ more than anything. With the reduced drop of some shoes to even a zero drop in some, this will give relief to the runner’s knee position and reduce stress and strain to give a more relaxed ride.”

At Tradehome, Kehrwald says, “Max cushioned products are still winning at the fitting stool. Additionally, technical running brands continue to disrupt the traditional trail and hike categories. We’re also keeping a close eye on how top running brands are blending upper materials as they aim to establish a presence in the casual footwear market.”

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