Are hiking shoes necessary/ Lauterbrunnen

Sneakers will work on the normal walking paths (those marked with yellow signs) but do have sneakers with good soles, ie. no tennis shoes or something like that.
I usually wear train running shoes as my normal everyday shoes around here. They look like sneakers, but do have more profile on the sole. These are also my normal travel shoes.

However do go on a hike with shoes that you do not mind getting dirty. Paths are muddy sometimes around here.

Like WengenK, I would also recommend trail running shoes. They are very versatile; I have a model that is discreet enough to be worn in the city as well if needed - in any case, "ugly sneakers" are very fashionable these days :-D .

I wear my brooks ghosts and those have been fine.

I brought my All Birds wool runners on my 2019 GAS tour, along with Merrell snow/rain booties, and had no issues. Be prepared for rain and mud.

A good tread is of utmost importance. Wear your heaviest shoes for travel to save space in the backpacks but be sure you are not in trainers/sneakers but rather have a great tread. I like these from Columbia for my low-hikers https://www.columbia.com/p/womens-redmond-iii-low-waterproof-shoe-1940621.html.

I prefer to have a good high-top hiker (which I brought on our current trip to the Dolomites and soon-to-be in Lauterbrunnen) and trekking sticks, but then I have a bad knee and cranky hip.

These are great responses thank you! I neglected to think about possible mud or muck in the event of rainy days..
Are low Oboz hiking shoes and jeans acceptable in towns for sightseeing?

Just got back from Best of Europe in 14 days and Lauterbrunnen was my favorite stop! We hiked from Lauterbrunnen to Murren and there is a wide, gravel walking path the entire way, some steep bits (but 100% manageable). I wore Hokas and had zero difficulty. Besides this main path, there are a lot of hiking trails that are marked on the sign with white and red arrows, and those looked more rugged so hiking shoes might be better? It was slightly drizzly/misty the day we went, and I also went to Tremmelbach Falls which had very steep, wet stairs and I had zero difficulty all day wearing my running Hokas. There were lots of hikers with hiking shoes and poles but I never felt the need. Guess it depends what you are planning to do.

Yes to Oboz! I spent a week in Lauterbrunnen the first part of August and wore them every day, everywhere.

Red/white marked paths definitely need hiking shoes!

This year, I think, we will have a massive record in numbers of people who died during a hike, mostly because they fell due to inapropriate shoes! We have never seen so many accidents before. Local newspapers are currently full of such reports.

Janet, I haven’t heard of Oboz before. I’m going to explore those for my winter hiking shoe. Love my Columbias but always open to new shoes I can add to my collection!

See Mardee's post on this forum - that's where I learned about them - "Just found my new favorite shoes" I think it was called.

I would echo others' recommendations for good trail running/walking shoes. One other consideration is to think about getting shoes that are waterproof/resistant with materials like Goretex. I am on my second pair of North Face Ultra 111 and love them. They're waterproof and work well on trails, including the easy trails I took in the Murren area. My wife got a different brand which I can't remember and did fine, although she didn't hike very much. BTW I try to pack light also and didn't bother with packing another pair of shoes; I did just fine, although the weather was good when I hiked.* If you have access to an REI or similar outdoor store you could ask for good advice and try some on before buying. Also, be sure to pack polypro or similar type socks which which are quick-drying and wicking moisture away from your foot. If I were hiking on more rugged trails I'd add a pair of wool socks over the liner socks.