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Monday, September 8, 2025

The 70-20-20 rule for Footwear Retail business

 The 70–20–10 rule is often used in retail business to balance core business stability with trend adoption and innovation. Here’s how it applies to footwear retail:







# 70% – Core / Safe Business (Bread & Butter)

Purpose: Stable revenue, repeat sales, low risk.

Footwear Types: Classic sneakers, black/brown formals, neutral sandals, everyday school shoes, sports basics.

Colors: Black, brown, white, grey, navy, tan, beige.

Characteristics:

-High volume, mass appeal.

-Seasonless bestsellers.

-Affordable price points (entry & mid-tier).

-Should always be in stock (“never out of stock” program).

# 20% – Seasonal / Trend-driven

Purpose: Capture fashion demand, stay relevant, attract younger customers.

Footwear Types: Chunky sneakers, pastel slip-ons, winter boots, fashion sandals, athleisure crossovers.

Colors: Pastels (spring), burgundy/mustard/olive (fall), neons for sport/street.

Characteristics:

-Mid-volume production.

-Changed every season.

-Slightly higher margins.

-Good for marketing campaigns & display windows.

# 10% – Innovative/Experimental / Statement pieces

Purpose: Build brand image, buzz and attract attention.

Footwear Types: Limited editions, experimental designs, tech-focused shoes (sustainable materials, smart soles).

Colors/Designs: Metallics, glow-in-the-dark, bold patterns, luxury-inspired.

Characteristics:

-Low volume, limited stock.

-High risk but high marketing value.

-Creates “Big effect” for the brand.

-Helps test new markets.

Summary Formula for Footwear Retail

70% → Safe sellers (Ready Revenue)

20% → Trend-focused (competitive edge)

10% → Experimental/statement pieces (brand value & excitement)

Business runs on reliable basics but still need to stay trendy and innovative to decorate the shops and attract special customers.

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