Executive Summary

In 1996, the UK's footwear manufacturing and distribution market grew by 7.5%, according to the British Footwear Association (BFA), to stand at £2.3bn. Between 1992 and 1996, the market grew by 31.4%. This shows that whilst the industry is still struggling hard against the flood of low priced imports, it is gradually carving a niche as an international centre of quality high-end footwear manufacture.

The UK shoe retail market has experienced several years of stagnation, owing largely to reduced margins following increasing competition. Several leading retailers have closed outlets, most notably the Sears group, although other, largely more niche focused chains, have expanded. In 1996, the retail market was valued at £5.36bn, up 7.1% over 1995.

Although in 1996, British exports of footwear grew and the percentage of footwear sold in Britain that was made in Britain was 17.7%, this contrasts poorly with 30 years previously, when 79% of the UK footwear market was British made shoes.

1996 and 1997 have been gloomy times for the British footwear industry, despite growth in sectors of the market. The industry has been negatively affected by the decline in employment in the manufacturing industry following several large-scale factory closures, the unrelenting attack from cheap imports bolstered by the strong pound, and the financial troubles that have led to several leading High Street retailers exiting the market or being put up for sale.

It is forecast that the footwear market will continue to grow in value terms until the year 2001, as the wider British economy continues to recover. The retail market is expected to be worth £6.5bn in 2001.

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