COUNTERING DECLINING CATEGORIES: HOW SMART SHOE RETAILERS STAY PROFITABLE

By Alan Miklofsky, November 29, 2025

Some categories don’t just “slow down.” They shrivel. They sag. They walk off the sales report like a bored teenager leaving a family dinner. When that happens, you can either watch your margins erode like a pair of cheap EVA clogs… or you can do what strong retailers do: pivot, reinforce, and re-engineer your mix before the decline metastasizes.

Below are the moves that separate retailers who survive category decline from those who file for nostalgia-based bankruptcy.

Identify the Decline Early (Before It Becomes a Crime Scene)
Every dying category gives off signals long before the bottom drops out. The trouble is, most retailers wait until the category is on the ground, asking for last rites.

Look for:
• Skus turning slower than your Uncle Larry backing out of a driveway
• Fill-ins dropping off a cliff
• Customers gravitating to adjacent categories without being prompted
• Brands quietly discontinuing key styles in that lane

If you’re noticing it now, the decline probably started six months ago.

Cut Open-to-Buy Ruthlessly — But Not Blindly
When a category declines, stop trying to “nurse it back to health” like it’s an injured duck. If the duck can’t fly, move on.

Reduce OTB in that category by 20–40%, depending on severity. The trick is to avoid going scorched-earth; maintain a curated presence for the customers that still buy. Your job is to right-size the slice, not eliminate it altogether.

Reinvest in Categories That Are Rising (or at Least Awake)
Every retailer has categories that deserve more love:
• Performance walking
• Modern comfort athleisure
• Premium sandals
• Stability and orthotic-friendly footwear
• Work/occupational footwear if your market leans that way
• Handbags and accessories for margin sweetness

Shift the dollars where customers are already voting with their feet.

Lean on Vendors — This Is What They’re Supposed to Be For
If a category is cratering, your vendors know. Many will pretend not to until you bring it up, but once you do, they’ll usually offer:
• Sub-category substitutions
• Fresh styles with better trend traction
• Marketing support
• Tight runs of winners instead of wide runs of duds

If a vendor refuses to acknowledge a downturn, that’s your cue to reevaluate the relationship, not your sanity.

Broaden Adjacent Solutions (The Secret Weapon Most Retailers Ignore)
A declining category rarely fails alone. It usually drags down the “needs-based halo” around it. For example:
• Dress shoes decline → leather care and hosiery follow
• Outdoor sandals decline → trekking socks and insoles follow
• Slip-resistant footwear decline → certain accessories soften

Replace the halo with adjacent solutions that are growing.
Examples:
• Add more recovery footwear near running/walking
• Expand backpacks, handbags, and travel items when sandals peak
• Introduce premium insoles, socks, foot care, and accessories — the gross margin vitamins of every store

Merchandise Your Winners Like They Deserve Attention
Don’t hide the strong categories in the back of the store like you’re embarrassed by your own success. Merchandise winners:
• Front tables
• Lighting
• Mannequins
• Feature walls
• Endcaps (the golden real estate)

When customers walk in, they should see the categories that keep the lights on — not the ones you’re slowly putting on hospice care.

Educate Your Sales Staff (Energy + Awareness = Sales)
Sales teams rarely notice category decline unless it hits them on the head. They keep trying to sell what they’ve always sold. Train them on:
• Which categories are cooling
• Which ones are rising
• What substitutions to offer
• How to redirect a customer naturally

If your staff can pivot better than a point guard, your declines sting a lot less.

Stop Discounting Your Way Out of a Decline
Most retailers panic-discount. They start marking down slower categories like they’re giving them a Viking funeral.

Discounting is a last resort.
Better tactics include:
• Cross-merchandising
• Bundling
• BOGO on accessories
• “Buy two categories, save X” offers
• Loyalty program nudges
• Vendor co-op-funded promotions

Price cuts should be the period at the end of the sentence, not the opening line.

Build a Calculated Exit Strategy (Every Category Deserves a Graceful Goodbye)
If the category is truly dead, don’t drag out the corpse. Develop a 60–180 day depletion plan:
• Stop new receipts
• Consolidate stock
• Re-merchandise to keep it compact
• Employ planned markdown cadence
• Convert space to rising categories as soon as turns justify it

A fast, clean exit always beats a long, emotional one.

Final Thought: Decline Isn't Failure — Standing Still Is
Retail is a living creature. Categories rise, fall, mutate, and reappear wearing mesh uppers and a new branding campaign. Your strength isn’t in predicting every trend — it’s in responding quickly when the tide shifts.

If one category slows down, move energy, inventory, and staff attention to the ones climbing. Decline becomes dangerous only when you pretend it’s temporary.

© 2025 Alan Miklofsky. All rights reserved.

www.AlanMiklofsky.com