Don’t Take Socks for Granted
I’d be willing to bet that most folks reading this article have no idea how many pairs of socks they own. Just for fun I conducted my own informal survey of friends family members business associates and neighbors to find out how many socks people own. The random sample consisted of twenty-seven men and seventeen women. It is a known fact that women buy more clothes than men… but not socks!
I found it common for men to own over two and a half times more socks than women. The men I spoke with owned an average of sixty-seven pairs of socks while women had only twenty-five. The counts ranged from a low of 4 (not a misprint) to a mind-blowing 336 pairs owned by a former professional basketball player which may account for a good portion of his drawer-busting inventory. Most folks that I spoke with only wear a small percentage of the socks they own myself included.
History
The first socks were made from “matted animal hair and were called piloi.” The origin of socks dates back to the 8th century BC in ancient Greece. Thankfully we have come a long way since then. There wasn’t much of a change in socks until the 2nd century (AD). Animal skins were replaced with knitted fabrics creating socks that bore a greater resemblance to the ones we wear today.
The Romans were the first to sew fabrics together to make what were known as udones. These were softer and more fitted than their predecessors. It wasn’t until the 5th century (AD) that socks made their way to Europe. By then they were called puttees and were considered a symbol of purity. As such they were reserved for those associated with the Church. Originally called stockings the word sock actually comes from the English word socc meaning light slipper both words derived from the Latin root word soccus.
Not surprisingly socks were originally intended for protection from the elements.
It wasn’t until the Middle Ages that socks in bright colors began to be worn as a fashion accessory. It is interesting to note that originally stopping at the ankle socks now got higher as pants grew shorter as was the rage in those days. As the demand for socks began to rise so did their prices. Socks became so expensive that they were worn mostly by noble families who were able to afford them. Anyone wearing socks back then was immediately associated with the upper class. So much for history.
Today
Here’s a look at the sock market today and what experts expect going forward. The major materials dominating the market are divided by cotton wool nylon polyester and a few other fabrications such as cashmere. Of those cotton accounted for nearly 45% of all sales according to the latest data available (2021) and is expected to continue. Jasan based in China is the world’s largest manufacturer of cotton socks producing an estimated 400 million pairs annually and employing 8000 people. Given that it may come as little surprise to learn that 90% of the world’s socks are manufactured in China.
Closer to home the U.S. sock market with sales approaching eight billion is expected to grow at a rate of 6.4% from now until 2030. The industry breaks socks down into four major classifications:
– ankle
– no-show
– crew
– knee-high
Of those ankle and no-show socks are expected to outperform the others. This makes sense given the increasing trend of athletic socks. With today’s emphasis on health and fitness and customers’ increasing awareness of higher quality socks for workouts and outdoor sports activities (running hiking pickleball golf etc.) the opportunities for retailers to capitalize on this market segment is outstanding.
Retailer opportunities
The Attractive Margins of Specialty Stores
The attractive margins relatively small square footage commitment and turnover potential all spell positives for specialty stores.
Key Insights from Adam Hambleton
According to Adam Hambleton Planning Manager at Management One average initial markup for the over 200 retail clients polled was 56.5%. Markdowns amounted to 8.8% and year over year sales for 2022 were up 3.3%.
Sales Breakdown by Month
- 44% of annual volume was generated in the 4th quarter of the year:
- October contributing 9.4%
- November 13.3%
- December at 21.9%
The remaining months of January-September all averaged about 6%.
The M1 Data Insights
The M1 data also revealed a relatively conservative inventory turnover of 2.4 as well as a somewhat shy percentage of total store revenue coming in at a mere 1.8%. Both metrics indicate a substantial upside could be achievable in the sock classification when given the attention deserved.
Potential in Sock Classification
Data provided to me by Matt Lucas Accessories Buyer at Karavel Shoes with one location in Austin Texas demonstrates the upside potential of the classification if managed efficiently. Socks make up 3.7% of total company sales have an annual turnover of 3.3 times a maintained markup of 55.4% and experienced a sales increase of 7.2% in 2022 with the seven main vendors he carries.
Insights from The Running Well Store
Meredyth Melcher Operations Director for The Running Well Store a three-unit retailer based in Kansas City MO added that socks generate an impressive “7-10% of total company sales during a given year” demonstrating the power of suggestive selling. Her six major vendors “turn 2.3X overall but the larger brands have turn rates approaching 3.5X.”
Success at Heyday
Heyday a very successful home and gift store in the upscale resort town of Bozeman MT reported a 2022 sales increase in their sock classification of 29%. Complimenting the nice increase was an astonishing inventory turnover of 5.9 times all of which coming from novelty offerings begging the question of possible supply chain issues and/or inconsistent reorders.
Merchandising Strategies and Vendor Assistance
Retailers Recognize GMROI Potential
The retailers I spoke with recognize the GMROI potential of the sock department and aggressively promote by taking advantage of available vendor programs.
Insights from John Gaither CEO of FEETURES
According to John Gaither CEO of FEETURES a premium performance brand carried in many shoe stores and run specialty shops the selling process begins with staff education. “Performance socks provide an opportunity to enhance the consumer experience and help drive incremental sales at healthy margins” a message that their sales reps will be consistently delivering in the coming year.
As part of their commitment to the retailer try-on socks are provided complimentary socks for staff and activation programs developed to help engage the retailer’s core consumers are part of the assistance offered at the vendor level.
Merchandising Ideas to Drive Sales
- Use of B3G1F (Buy 3 get 1 Free) promotions with vendor assistance provided by way of discounts
- Sale bins of closeouts
- Various sales contests and incentives for associates
Conduct Your Own Survey
How many pairs of socks do you own? Why not conduct your own survey of friends and staff and see if your results mirror mine. Depending on your outcome assortment modifications could be beneficial to profitability.
Ritchie Sayner
Sources
www.grandviewresearch.com/industry-analysis/socks-market
www.imarcgroup.com
www.soxy.com
www.kohantextilejournal.com
Summary
The article explores the surprisingly extensive sock ownership among men compared to women revealing historical and modern perspectives on sock usage and market trends. It highlights the sock market’s growth potential especially in the U.S. where sales are projected to increase driven by the popularity of athletic socks. Retailers are seizing opportunities with strategic merchandising and vendor assistance to boost sales and capitalize on the sock segment’s profitability.
“Performance socks provide an opportunity to enhance the consumer experience and help drive incremental sales at healthy margins.”
Real-World Examples of Sock Market Trends
The sock market is a fascinating example of how a simple product can have significant economic and cultural impacts. Here are a few real-world examples illustrating these trends:
- In China Jasan is the world’s largest manufacturer of cotton socks producing approximately 400 million pairs annually and employing 8000 people. This highlights China’s dominant position in the global sock manufacturing industry where 90% of the world’s socks are produced.
- In the United States the sock market is experiencing growth with sales nearing eight billion dollars. The market is expected to grow at a rate of 6.4% until 2030 driven by the popularity of athletic socks like ankle and no-show styles reflecting the increasing emphasis on health and fitness.
- Heyday a home and gift store in Bozeman MT reported a 29% increase in sock sales in 2022 with an impressive inventory turnover of 5.9 times. This success was largely due to their focus on novelty sock offerings demonstrating the potential for niche marketing within the sock industry.
