Pain at the pump

Great question. Not surprisingly, spokespeople for Neiman Marcus and Barneys declined to comment on the great shoe price debate. But Rutenberg says Barneys shoppers aren't flinching at the prices. "Danielle Steel spends $4 [million] to $5 million a year at Barneys on shoes for herself and her children," he says, adding that the Beverly Hills store "sells $22 million in footwear per year."

Evelyn Ungvari, owner of the boutique Diavolina on Robertson Boulevard, says that she would gladly drop the prices on her shoe selection if the dollar rallies back to health.

"I feel horrible when my girls come in here and say, 'I can't spend this much on sandals,' " she says, seated amid $775 Pierre Hardy peep-toe pumps and $595 Gil Carvalho gold sandals that zip up the back. "They think it's my fault, but I am paying these high prices too."

Ungvari has smartly stocked her shop with a variety of styles to suit every budget. Gladiator sandals by Dolce Vita priced at $124 are just a few strides away from Givenchy's $395 patent leather version.

Other small shoe purveyors are seeking out alternative suppliers to stay afloat. "A boot we had last season for $495 would have to sell for $695 this fall and so we're not carrying them," says Beth Whiffen, owner of boutique Il Primo Passo in Santa Monica. She's looking to Spain, rather than Italy, for more reasonable lines. "Our customers spend up to $495 without any price resistance. That's the breaking point."

Still, retailers -- be they sleek behemoths or quaint boutiques -- mark up shoes 2.4 to three times the wholesale price. (On clothes and bags, the average markup is generally twice the wholesale price.) A pair of shoes that wholesale for $200 to $250 retail for $600. Exotic skins such as python, eel and stingray ratchet up costs even more. The same goes for ornate accents such as the mirrored heels on those ballyhooed Balenciaga sandals or the sculpted flower stem heel on Prada's latest pumps.

But like the real estate market, the shoe market could be in for a correction. NPD Group reports that in 2005, footwear sales were up 11%. That figure dipped to 5% in 2006 and wilted to 2.5 % last year. Now, with a recession looming, the industry can expect some scuffs.

In the meantime, don't fault Lanvin or the retailers for your financial blisters. "This is a free market," says Milton Pedraza, chief executive of the Luxury Institute, a retail research firm in New York. "The consumers are to blame for paying these prices."

Who's up for a revolution? Wear comfortable shoes.

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monica.corcoran@latimes.com