If you think inflation means stores are cutting prices to benefit consumers, think again. Another American shoe giant is betting on high-priced products, and is closing stores at local supermarkets.
The way we buy shoes has changed a lot. Sturdy dress shoes have been replaced by flexible comfort, according to the US Men’s and Women’s Footwear Market Report. But keeping up with changing fashion trends is no longer the hardest part of the game.
Today, estate agents are facing tremendous pressure from rising prices, inflation, and changing consumer preferences. As McKinsey and Company’s The State of Fashion 2026 report notes, the new US tariffs have “redrawn trade maps,” forcing companies to quickly rebuild supply chains on the fly.
Americans spent $121 billion on shoes last year, importing six pairs of shoes per person, according to the FDRA. Yet one of the country’s largest shoe stores, Calerespowerhouse in the background Famous shoes, Sam Edelmanagain Stuart Weitzmansays its affordable business is slowing while demand for premium products is growing.
Consumers pressured by inflation are cutting back on shopping to prioritize personal well-being, health and longevity, according to McKinsey. This change is causing many shoe retailers to rethink both store types and product strategies.
I just reported about Genesco (the powerhouse behind the tour) is quietly closing 202 stores between 2023 and mid-2026. Then, there is Freebird’s reverse, foot locker, which covered hundreds of Champs locations, as well JD Sports announced the closing of 175 Hibbett stores.
Now, Caleres has joined the list, which strongly adapts to consumer behavior.
Caleres has closed 82 stores in the last four years, as it bets on premium shoes. Bloomberg / Getty Images
Caleres has closed 82 stores in the past four years
Global footwear company with a diverse portfolio of popular brands, Caleres, recently reported its first quarter earnings results, showing an 8.5% year-over-year increase in net sales to $666.6 million.
Importantly, while the premium product portfolio saw net sales increase by 20.6% year-over-year, the company’s more affordable Famous Footwear segment experienced a net sales decline of 2.5%.
During the quarter, the company closed 10 Famous Footwear stores and opened one, ending the quarter with 812 stores.
At the end of 2021, the Famous Footwear division operated 894 stores, according to the company’s 10-K filing with the Securities and Exchange Commission. This means that Caleres closed 82 stores in a period of four years and three months, which is an average of 19 stores per year.
Why is Caleres closing stores?
If you look at the company’s leading numbers, it can be noticed that although the sales of the company’s products increased significantly, the net sales of Famous Footwear decreased, including the same sales of Famous Footwear.
Caleres pointedly noted that its luxury and luxury brand segments, such as Stuart Weitzman and Sam Edelman, are seeing strong growth, while the more affordable chain is struggling due to rapid inflation that is squeezing everyday shoppers.
“While we see some improvement leading up to Easter, we believe that faster inflation is putting pressure on consumer spending and sales, especially as we enter April,” Caleres President and CEO John Schmidt said during the call.
However, it is important to note that although Caleres plans to close five stores this fiscal year, it also plans to open 12 more stores, which will result in a total decrease of only 3 stores per year. So, what is behind this closing and opening strategy?
Caleres bets on premium products
To offset the decline in the affordable segment, Caleres is now doubling down on its “lift and plan strategy,” which has seen strong growth.
The strategy called lift and organize is Famous Footwear’s first step to expand the assortment and sell premium, leading brands and products, from the lower price categories — a strategy that seems to be working well.
“Our Raise and Organize strategy continues to work for our popular customers. Sales of Premium Products increased nearly 50% quarter over quarter and penetration reached nearly 20% year over year. We have seen growth in the quarter since Jordan, Skechers, Birkenstock, New Balance, Reef and Brookswhile several brands in the Caleres portfolio finished among Famous’ top 15 best-selling brands,” added Schmidt.
Products that most consumers don’t know Caleres owns
Caleres, founded 148 years ago, is the powerhouse behind several famous brands. In fact, “brands are the main feature of Caleres,” writes umbrex. Why? Because the company’s greatest strength is not only in selling shoes, but in offering a variety of shoes that cater to consumers at all prices and various uses.
Caleres’ key brands:
Popular shoes: A luxury and athletic brand for the whole family, built on comfort, value, and repeat purchases.
Sam Edelman: One of the most important fashion brands of Caleres, offering affordable and attractive women’s shoes.
Allen Edmonds: A heritage premium men’s brand known for high-quality, American-made men’s shoes.
Stuart Weitzman: A global luxury brand featuring craftsmanship and precision engineering.
Naturalizer: A women’s footwear brand with a long history and a stance that combines comfort and style.
Vionic: A brand focused on comfort and well-being that appeals to consumers who prioritize support and everyday wear.
Blowfish Malibu: It is a very common and object-oriented brand, especially for women’s daily shoes.
Dr. Scholl’s Shoes and LifeStride. Brands associated with comfort, casual wear, and everyday functional footwear. Sources: Caleres, Umbrex
Related: The iconic mall chain you grew up visiting just closed 30 more stores
What Caleres’ new strategy means for the company and consumers
Retail analysts are increasingly viewing store closings as a way to boost profits rather than a sign of an imminent crisis. Research from Placer.ai notes that chains often reduce the areas where they cannot reach the same customers more effectively by using smaller footprints and digital channels.
Neil Saunders, Managing Director and Retail Analyst at GlobalData Retail, has repeatedly argued that store closures are often better done than closed.
“Store closings aren’t all that unusual” and aren’t evidence of a “retail apocalypse,” Saunders said.
For shoppers, the most significant change may not be the store closings themselves, but Caleres’ growing focus on premium footwear.
The company is increasingly emphasizing premium brands and high value products, incl Jordan, Birkenstock, Brooks, New Balanceagain Skechers. At the same time, management expects Famous Footwear’s sales and like-for-like sales to decline this year as its premium product portfolio continues to grow.
As a result, consumers can see:
Extra shelf space dedicated to premium shoes.
Continued closure of underperforming locations as the company repairs its retail vehicles.
Big investment in online shopping and consumer orientation.
Less emphasis on lower priced segments as management pursues higher revenue products.
Related: Women’s fashion chain is closing its fitting rooms
This story was originally published by TheStreet on Jun 9, 2026, where it appeared first in the Marketing category. Add TheStreet as a favorite source by clicking here.
