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Inflation in June rose at slowing rate, and footwear retail prices saw a decrease for the first time in more than two years.

Consumer prices rose 3 percent in June compared to last year, according to the latest Consumer Price Index released on Wednesday by the U.S. Bureau of Labor Statistics. This marks the smallest 12-month increase since the period ending March 2021 and a slowdown from May’s 4 percent growth and April’s 4.9 percent. Compared to May 2023, prices in June rose 0.2 percent.

Excluding volatile food and energy costs, the Core CPI rose 0.2 percent from May and 4.8 percent from the same month in 2022.

The progress comes as retailers gear up for the 2023 back-to-school season, which is likely to be characterized by shoppers looking for the best deals. KPMG’s 2023 Consumer Back to School survey found that shoppers plan to spend on average about $377 per kid this season, which is up 21 percent from a year ago. More than 60 percent of respondents report being concerned about inflation, with 70 percent of them looking for early discounts and 57 percent looking for cheaper brands.

Retail footwear prices dropped 0.9 in June compared to the prior year, marking the first time prices dropped in 26 months. Women’s footwear prices dropped 0.2 percent and men’s declined 1.6 percent. Just in time for back-to-school, children’s footwear prices dropped 0.8 percent.

According to the Footwear Distributors and Retailers of America (FDRA), year-to-date footwear prices are up just 0.2 percent and are expected to decline year-over-year through the second half of 2023. In April, FDRA noted a large gap between import costs and retail prices, which FDRA predicted would level out.

“With retail footwear prices certainly not likely to go sharply higher, we continue to look for these import costs to remain soft well through 2023, narrowing this gap even further,” Gary Raines, chief economist at FDRA, told FN.

Online prices in June also fell 2.6 percent year-over-year, according to data from Adobe on Tuesday. This marked the biggest drop since since May 2020 when prices fell 1.5% year over year. Compared the May, online prices fell 1.3 percent in June.

Storied shoemaker The Rockport Co. surprised the industry last week when it declared bankruptcy and announced plans for a sale, but retail partners said the signs have been there for quite some time.

“Our business with them has declined over the years. They seemed to have had a particularly hard time rebounding from COVID,” said Greg Wagner, co-owner and purchasing VP at Shoe Fly Shoe Inc., which has 20 stores in the Mid-Atlantic region.

Matt Lucas, men’s buyer at Karavel Shoes in Austin, Texas, agreed: “COVID threw them for a loop, and I would say probably more so than a lot of other vendors.”

He credited that, in part, to the company’s unfavorable sourcing setup. “We’ve been doing a lot more business through their Dunham brand than Rockport itself, and Dunham really had a hard time during COVID.” Lucas explained that Dunham (which Rockport acquired from New Balance in 2018) was still manufacturing out of the New Balance facilities and mid-pandemic was forced to secure new production arrangements. “Their whole logistical infrastructure is still in disarray and has been throughout this whole process,” said Lucas.

But for Bob Schwartz, owner of Eneslow Shoes & Orthotics in New York, the troubles at Rockport run much deeper. “They never learned how to be a women’s shoe company,” he said, noting that the company’s biggest strength has been in its men’s professional collection. “But you know — who’s going back to work right now in a new pair of professional dress shoes? You look at New York, and in the financial district, the population is down 70 to 80 percent.”

And within the men’s category, he said Rockport was further undercut by brands like Florsheim, Stacy Adams, Samuel Hubbard and Johnston & Murphy, who were better able to deliver on pricing and product.

Schwartz said the other nail in Rockport’s coffin was the sneaker boom. “They’ve not been involved at all in the running revolution that Hoka and On created,” he said. “And it’s not about brown shoe versus athletic. It’s about innovation versus, you know, the lack thereof.”

Overall, retail partners said Rockport lacked a clear brand identity and needed more investment in marketing and product development — two business areas that are crucial in today’s hyper-competitive consumer marketplace.

On June 15, Rockport announced it had filed for Chapter 11 protection in a U.S. District Court in Delaware in order to “review and restructure” its assets. Coinciding with the move, CEO Greg Ribbatt resigned from the company (though he will still assist with the transition) and Joseph Marchese of PKF Clear Thinking has been appointed chief restructuring officer.

The company also declared that it intended to pursue an auction and sale process and had already entered into negotiations with a potential purchaser to serve as a stalking horse bidder. FN sister publication WWD reported today that Authentic Brands Group is confirmed as the stalking horse bidder, though the court will accept offers through June 26, with a final decision set for June 28.

Authentic has been behind many of the fashion industry’s biggest deals in recent years. Some of its latest acquisitions have included Hunter Boots, Vince, Ted Baker and Reebok. Other names have been floated for potential buyers, including WHP Global and Marquee Brands, but multiple footwear execs pointed to Designer Brands Inc. as another likely home for Rockport.

DBI recently acquired the beleaguered Keds brand from Wolverine Worldwide Inc. to stock in its DSW retail stores. “If its DSW that picks it up, that would be a brilliant move,” said Schwartz. “I love it for anyone who has a bullpen of classic brands.”

In its more than 50-year history, Newton, Mass.-based Rockport has changed ownership a number of times. It was acquired by Reebok in 1986 and remained part of that corporation even when both were owned by Adidas. In 2015, it was sold to New Balance and Berkshire Partners, but was forced in 2018 to declare bankruptcy, in part due to issues stemming to its prior German parent. At the time, CFO Paul Kosturos claimed that a “costly and time-consuming separation” from Adidas was among the key factors contributing to the shoemaker’s need to seek Chapter 11 protection. Rockport was acquired out of bankruptcy in 2018 by its current owner, Charlesbank Capital Partners, a private equity firm.

For Alicia Murray, co-owner of Murray’s Shoes in Littleton, Colo., her hope is that Rockport’s next owner recognizes the heritage of the more than 50-year-old brand. “It’s sad to see such an iconic brand struggle through the years. We hope to see someone buy the company that knows the history of Rockport and the importance of the brand in the shoe industry,” she said. “The Rockport Co. has been a very important part of our size-and-width business and we would hate to lose that.”

And Lucas believes all that’s truly needed is a bit of “renovation” to turn the company around. “I don’t think it’s anything where they’d have to reinvent the wheel,” he said. “Rockport has a lot of name recognition. Just get back to basics and do the things that have worked in the past.”

And what does Rockport do best? Schwartz spelled it out: “Their heritage was to have shoes that were more comfortable, that were first to the market — not last — that had an identity and a brand value. Anybody who wants to follow that model, Rockport is a good brand to bring back.”