The balance sheet of German footwear manufacturers for the year 2024 is so-so and differs a lot from company to company. Whereas strong brands with a high presence in international markets registered positive trends, providers in certain segments like business or comfort are still facing significant challenges.
Domestic sales of the German footwear industry registered at least a nominal moderate increase. On the other hand, foreign business transactions of German footwear manufacturers fell short of expectations. This is based on the latest figures of the Federal Statistical Office (destatis.de) compared to the previous years.
Due to Germany’s second successive recession year, impulses aimed at improving Germany as industrial location are urgently needed. In spite of all the resiliency and creativity in the sector, the heavy burdens from the general legal conditions and excessive bureaucratic obligations are apparent here. The HDS/L hopes that legislators at the European and German federal level shift their focus once again to the competitiveness of the economy.
This difficult current situation of the industry is also reflected in the HDS/L-own economic survey that the federal association conducted earlier this year. Among the most important results was that most companies of the German footwear industry rated the economic situation as no more than “satisfactory” – especially regarding the order situation and sales development. About the prospects for the future, most of them expect “worse conditions and results” with regard to sales development. business growth and volume of orders. Special risks are seen in additional regulations that have already been announced and adopted and the ever-growing bureaucracy associated with them. CEO Manfred Junkert comments: “Politics must finally prioritize the improvement of the general economic conditions.”
From January to November 2024, the total sales of the footwear sector reached 2.12 billion euros, nominally representing a slight increase of 2.4 percent compared to the equivalent time period in 2023, when sales reached 2.07 billion euros.
In Germany, sales increased from 1.55 billion euros in 2023 to 1.62 billion euros in 2024 (+4.5 percent). On the other hand, foreign sales fell 6.6 percent, going from 528 to 493 million euros, whereby 61 percent of foreign sales were achieved in the eurozone.
The number of persons employed in the 33 larger companies of the footwear industry having more than 50 employees rose in the equivalent time period from 9,043 (2023) to 9,283 (2024). This corresponds to a 2.65 percent increase. If smaller companies are included, the sector employs roughly 15,500 persons. The hours worked also rose from 1,066 to 1,082 thousand.
The sum of wages and salaries in the footwear industry companies rose disproportionately in 2024. The sum of wages increased from 25.8 million euros (2023) to 27.9 million euros (2024), reflecting an increase of over 8 percent. This increase lies significantly above the German inflation rate of 2.2 percent and in view of the stagnating sales, it can barely be absorbed by the companies.
The total export value of footwear was approx. 10.4 billion euros in 2024 compared to 10.1 billion euros in the previous time period, reflecting an export value increase of about three percent.
The most important trade partners in 2024 were also our closest neighbors: Poland and France remain the most important export destinations.
The value of exports to France was 878 million euros from January to November 2023. In the first eleven months of 2024, it was 890 million euros. This represents a slight increase of 1.4 percent.
This is topped by Poland, our most important trade partner in Europe: From January to November 2023, exports even reached 1.47 billion euros, and for the same time period in 2024 the figure was 1.54 billion euros – a 4.8 percent increase.
The total import value for 2023 was roughly 11.9 billion euros; in 2024 it reached 11.7 billion euros, a slight decrease (the December figure for 2024 was estimated) – a 1.7 percent decrease. It is especially noteworthy that Vietnam, with 2.6 billion euros in 2024, replaced China (2.5 billion euros) for the first time as the most important country of origin for the entire year. The previous year had already indicated this. This trend can be attributed to the continuing great importance of the sneaker and sports shoe segment.
Vietnam: The import value from January to November 2023 was 2.3 billion euros, and from January to November 2024 it was 2.6 billion euros – an increase of more than 13 percent. This is certainly due to the fact that in recent years sneakers and sports shoes have become increasingly significant for the footwear market, and Vietnam is the most important production country for this market segment.
China: Import value out of China from January to November 2023 was 2.7 billion euros, and from January to November 2024 it decreased by 7.4 percent.
India: Import value out of India from January to November 2023 was 470 million euros and from January to November 2024 it reached 472 million euros – which still represents a slight increase of 0.4 percent.
In 2024, consumer prices for shoes rose by + 5.51 percent, a somewhat lower increase compared to the previous year (2023: +7.21 percent), but they remained clearly above the 2.2 percent overall inflation rate. After being significantly lower than the other price trend for many years, an adjustment to the generally higher costs can be seen. At the manufacturer level, the 0.79 percent price increase in 2024 was a little lower than in the previous year (+1.43 percent in 2023).
The recession in Germany continues. In 2024, the price-adjusted German gross domestic product was 0.2 percent lower than in the previous year. The general economic situation remains very strained in this year as well. The growth forecast for 2025 has recently been lowered. Therefore, we assume that strong adjustments will continue in the stationary retail trade.
Against this background, the HDS/L is concerned about the new year. Nonetheless, positive figures are definitely expected for some market segments. This applies not only to the sports shoes and sneakers sector, the barefoot (minimalist) shoes sector but also to the luxury segment. Especially the continuing dynamism seen in the sneaker and sports shoes segment, as emphasized by the import figures from Vietnam, for example, indicate further growth.
Politically speaking, uncertainties may remain. Economic challenges caused by the environmental standards that have been enacted and will keep being implemented not only in the German economy but also at the EU level are expected. In addition, there is the uncertainty in the formation of a government after the elections not only in Germany but also in Austria and France, for instance.
The new American government has already announced a changed tariff and trade policy, which would certainly affect European trade policy. In addition, there are the continuing security crises, especially Putin’s war of aggression that still impacts both the economic uncertainty and the energy costs in the EU.
Gross turnover in billions of euros
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Expectations for 2025 remain cautious among footwear retailers. A recent BTE survey shows that only slightly more than a quarter of footwear retailers anticipate a significant increase in sales for the current year. An equal percentage expects sales to remain at the 2024 level, while nearly 45 percent fear a decline of one percent or more.
Ranking 1 - 10 (1 = no issue, 10 = very large issue)
BTE attributes the negative trend in 2024 and the pessimistic outlook for 2025 to persistently weak consumer spending and widespread uncertainty among the population. BTE Managing Director Rolf Pangels explains: “Despite rising wages, consumers have less and less money in their wallets due to increasing costs for housing, healthcare, and mobility. Additionally, geopolitical crises and the general uncertainty about their own economic future are discouraging consumers from buying new shoes.”
With the upcoming Bundestag elections in mind, BTE is calling on policymakers to reduce the financial burden on consumers. Pangels states: “The government must take measures to improve consumers’ purchasing power so that retail – particularly the footwear sector – can regain momentum. Tax burdens on citizens must be lowered at all levels, such as income and electricity taxes, as well as social security contributions, to give them more financial flexibility for private consumption. The same applies to reducing cost burdens on businesses.”
Additionally, BTE highlights the unfavorable conditions for the footwear retail industry. According to most brick-and-mortar shoe retailers, excessive bureaucracy is currently the biggest problem. Pangels states: “The flood of bureaucratic regulations is suffocating our industry and hindering business development to an unacceptable extent.”
BTE is therefore calling for a significant reduction in bureaucratic requirements, particularly in labor law, data protection, fire safety regulations, document retention obligations, and the formal documentation requirements for business transactions. Moreover, numerous sustainability laws and reporting obligations pose nearly insurmountable challenges for large shoe retailers, adding considerable costs.
Another major concern for footwear retailers is the declining attractiveness of shopping areas, particularly in city centers. BTE is urging urban planners to ensure essential location factors such as:
According to the Germany City Center Study 2024, shopping remains the primary reason for 71 percent of the population to visit city centers. Additionally, 68 percent of respondents consider footwear retailers an important part of city centers. Pangels emphasizes: “This potential must be maintained and further expanded through smart urban planning policies.”
On a positive note, BTE reports that fewer footwear retailers closed in 2024 compared to 2023. The sharp decline in store numbers over the past few years appears to be slowing down. Currently, there are an estimated 2,550 physical footwear retail businesses in Germany, with a total of around 8,700 shoe stores.
Sources:
HDS/L Bundesverband der Schuh- und Lederwaren-industrie e.V.
BTE Handelsverband Textil Schuhe Lederwaren
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