Why One Popular Shoe Brand is Lowering Prices in the Face of Inflation

As inflation continues to put a strain on family budgets, one well-known footwear manufacturer is taking a different approach to provide relief to weary consumers.

Keen, an Oregon-based company that specializes in walking shoes, boots, and water sandals for all ages, is lowering prices on its products amid a period when many customers are cutting back on their shoe purchases.

While most companies in the industry are raising prices, Keen is moving in the opposite direction to address the concerns of its customers.

According to a survey conducted by market research firm Circana, an increasing number of consumers (56% compared to 52% in July 2022) have delayed or skipped footwear purchases or opted for more affordable alternatives in the past six months due to price increases across various goods.

The survey also revealed that households with children are reducing footwear spending more than those without, as parents prioritize meeting their kids’ footwear needs over their own.
Beth Goldstein, a footwear and accessories analyst at Circana, explained that families are feeling the pressure of inflation, especially without the government assistance that was previously available.

In response to these challenges, Keen has taken the initiative to lower prices across its product portfolio. The company has reduced prices by an average of 5% on all its offerings, ranging from $36 for kids’ shoes to approximately $250 for adult shoes.

John Evons, President of Keen, expressed the company’s belief that this pricing adjustment is the right course of action to assist consumers in the current inflationary environment.

Keen aims to enable people to continue enjoying outdoor activities and working safely with affordable footwear. The decision to reduce prices was officially announced on the company’s website.

Keen, which employs around 350 individuals in the US, manufactures its footwear in Portland as well as in factories located in the Dominican Republic and Thailand.

Evons highlighted that being a vertically integrated business has allowed Keen to lower prices effectively.

With 40% ownership of its supply chain, from sourcing raw materials to manufacturing and distribution, Keen has been able to adapt swiftly to the evolving market, even amid the supply chain challenges and disruptions caused by the pandemic.

As supply chain and shipping costs have eased in the post-pandemic period, Keen intends to pass on some of the savings to its customers.

Evons affirmed the company’s commitment to maintaining these reduced prices for the foreseeable future.

Beth Goldstein acknowledged the uniqueness of Keen’s approach in an industry where most brands respond to consumer cutbacks by offering increased promotions rather than reducing original product prices.

She expressed curiosity about whether other companies will follow Keen’s lead in this regard.
Keen’s decision to lower prices amidst inflationary pressures showcases its dedication to supporting consumers and striving to make their products more accessible.