A footwear assembly structured to be collapsible comprising a sole including a front portion and a rear portion movably interconnected by an intermediate segment. An upper extends along at least a portion of the length of the sole, depending upon the style of the footwear, wherein the upper and the sole are preferably structured to define the sandal configuration which may vary in style. The intermediate portion includes sufficient flexibility to significantly reduce the size of the sandal by folding the sole into a stored orientation defined by the front and rear portions disposed in at least partially overlying relation to one another. A pouch-like container is dimensioned and configured to receive and maintain at least a pair of the sandals on the interior thereof, when in the stored orientation.