If you think inflation means stores are lowering prices to win back consumers, think again. One of America’s historic footwear giants is betting on higher-priced products and closing stores in local shopping centers.
The way we buy shoes has been radically transformed. Stiff dress shoes have been replaced by versatile comfort, according to the U.S. Men’s and Women’s Footwear Market Report.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, traditional retailers face intense pressure from tariffs, inflation and changing consumer preferences. As McKinsey and Company’s The State of Fashion 2026 report notes, new US tariffs have “completely redrawn trade maps,” forcing brands to quickly rebuild supply chains on the fly.
Americans spent $121 billion on footwear last year, importing six pairs of shoes per person, according to the FDRA. However, one of the country’s largest footwear retailers, Caleresthe power behind famous footwear, Samuel Edelmanand Stuart Weitzmansays its affordable business is slowing as demand for premium brands increases.
According to McKinsey, inflation-pressured consumers are abandoning impulse shopping at malls to prioritize personal well-being, health and longevity. This shift is prompting many footwear retailers to rethink both store fleets and product strategies.
I recently reported on Genesco (the powerhouse behind Journeys) quietly closed 202 stores between 2023 and mid-2026. So, there are freebird pull back, foot locker, which closed hundreds of Champs locations, and JD Sports which announced the structural closure of 175 Hibbett stores.
Now, Caleres has joined the list, aggressively adapting to changing consumer behavior.
Caleres closed 82 stores in the last four years, betting on premium footwear. Bloomberg/Getty Images
Caleres closed 82 stores in the last four years
Caleres, a global footwear powerhouse with a diverse portfolio of popular brands, recently reported its first-quarter earnings results, revealing an increase in net sales of 8.5% year-over-year, reaching $666.6 million.
Importantly, while the premium brand portfolio saw a net sales increase of 20.6% year over year, the company’s most affordable segment, Famous Footwear, saw a net sales decrease 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 segment operated 894 stores, according to the company’s Form 10-K filing with the Securities and Exchange Commission. This means that Caleres has closed 82 stores in the period of four years and three months, with an average of 19 store closures per year.
Why has Caleres been closing stores?
When looking at the company’s gross profit figures, it can be seen that while the company’s brand sales have grown significantly, its Famous Footwear net sales have been declining, including Famous Footwear’s comparable sales.
Caleres explicitly noted that its premium and luxury brand segments, such as Stuart Weitzman and Sam Edelman, are experiencing strong growth, while a more affordable chain is struggling due to accelerating inflation squeezing everyday consumers.
“While we saw improving trends leading up to Easter, we believe accelerating inflation put pressure on consumer traffic and sales, especially as we moved into April,” Caleres President and CEO John Schmidt said during the earnings conference call.
However, it is important to note that while Caleres plans another five store closures this fiscal year, it also plans to open another 12 stores, which would result in a net decrease of only 3 stores for the year. So what’s 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 edit strategy,” which has seen powerful growth.
The so-called lift and edit strategy is Famous Footwear’s initiative to increase assortment and sales of on-trend premium brands and products, moving away from lower-margin value categories, a strategy that appears to be working.
“Our Elevate-and-Edit strategy continues to resonate with our celebrity consumers. Sales of Elevated products increased nearly 50% in the quarter and penetration reached nearly 20% year over year. We saw growth in the quarter from Jordan, Skechers, Birkenstock, New Balance, Reef and Brookswhile several brands from Caleres’ portfolio finished among Famous’s top 15 best-selling brands,” Schmidt added.
The brands that most consumers do not know that Caleres owns
Caleres, founded 148 years ago, is the driving force behind several popular brands. In fact, “brands are an important strategic lever for Caleres,” writes Umbrex. Because? Because the company’s greatest power is not only in selling shoes, but in offering consumer-oriented footwear brands of various prices and uses.
Caleres key brands:
Famous footwear: One of the best casual and sporty brands for the whole family, built around comfort, value and repeat purchases.
Sam Edelman: One of Caleres’ largest fashion brands, offering affordable luxury women’s footwear with modern appeal.
Allen Edmonds: A traditional premium men’s brand known for its high-quality, handmade American men’s shoes.
Stuart Weitzman: The global luxury brand featuring precision engineered craftsmanship.
Naturalizer: A women’s footwear brand with a long history and a positioning that combines comfort and style.
Vionic: A comfort and wellness-oriented brand that appeals to consumers who prioritize support and daily use.
Malibu Pufferfish: A more casual and value-oriented brand, especially relevant in everyday women’s footwear.
Dr. Scholl and LifeStride Shoes. Brands associated with comfort, casual clothing and practical footwear for everyday life. Sources: Caleres, Umbrex
Related: The iconic shopping center chain you grew up visiting just closed another 30 stores
What Caleres’ new strategy means for the company and consumers
Retail analysts increasingly see store closures as a way to improve profitability rather than a sign of impending trouble. Research from Placer.ai notes that chains often reduce locations when they can reach the same customers more efficiently through digital and smaller-footprint channels.
Neil Saunders, CEO and retail analyst at GlobalData Retail, has repeatedly argued that store closures are often an optimization rather than a collapse.
“Store closures are not that unusual” and are not necessarily evidence of a “retail apocalypse,” Saunders said.
For consumers, the most significant change may not be the store closures themselves, but Caleres’ increasing focus on premium footwear.
The company is increasingly emphasizing premium brands and higher-priced products, including Jordan, Birkenstock, Brooks, New Balanceand Skechers. At the same time, management expects Famous Footwear’s sales and comparable sales to decline this year even as its portfolio of premium brands continues to grow.
As a result, consumers were able to see:
More shelf space dedicated to premium footwear.
Continued closure of underperforming locations as the company refines its store fleet.
Greater investment in online and direct-to-consumer purchases.
Less emphasis on lower-priced categories as management looks for higher-margin products.
Related: Women’s fashion chain closes its fitting rooms
This story was originally published by TheStreet on June 9, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
