**Shoe Zone Announces Further Downsizing with 18 More Branch Closures Amid Financial Setback**
Shoe Zone, one of the leading footwear retailers on British high streets, is set to close an additional 18 stores as it continues to grapple with challenging trading conditions. This decision follows the closure of more than 30 outlets over the past year, highlighting ongoing struggles facing many businesses on the high street.
Currently, Shoe Zone operates 278 branches up and down the United Kingdom, a sharp reduction from its footprint a year ago. In the first half of the financial year alone, 21 shops were shuttered, while the company only managed to open two new stores and expand two others. These moves form part of a wider restructuring, with the retailer now planning to consolidate and aim for just 260 shops nationwide as it refocuses its business strategy.
The company’s financial performance has reflected these troubles, with Shoe Zone recently reporting a swing into losses. For the six months ended 29 March, it recorded a pre-tax loss of £2.3 million, in stark contrast to the £2.6 million profit it posted over the same period last year. Revenue also fell by 6.5%, coming in at £71.5 million. Significantly, this decline was attributed at least in part to the fact that the company is now trading from a much-reduced number of locations.
Despite these setbacks in the bricks-and-mortar estate, digital sales provided a glimmer of hope, rising by 6.4%. However, this increase was not sufficient to offset the wider downturn. Industry observers note that Shoe Zone’s predicament is not unique, as many retailers have been hampered in recent years by a combination of subdued consumer confidence and rising operational costs.
The company has announced that approximately £6 million will be spent this year on refurbishing and converting existing shops to a new format, in a bid to breathe fresh life into its retail offer. It appears that while some branches will close, remaining ones will see investment as the business seeks to maintain a leaner but more modern presence on the high street.
Wider economic forces have also been cited as influencing the decision to reduce the store count. The business highlighted ongoing low consumer confidence, with many shoppers tightening their belts amid an uncertain economic outlook. Additional cost pressures are also looming, with increases in both national insurance contributions and the national living wage, which are expected to push up outgoings over the coming months.
Yet, despite this rather gloomy picture, there are signs the future may not be entirely bleak. Shoe Zone has reported a recent decline in shipping costs and a stronger pound against the US dollar, both of which could help alleviate some of its financial pressures. Consequently, while the company had previously downgraded its profit expectations for the year from £10 million to £5 million, leadership remains hopeful that trading conditions may yet improve.
Market analysts, however, remain wary. Russ Mould, investment director at AJ Bell, commented that the turnaround from profit to loss, scrapping of dividends, and continuing uncertainty have shaken investor confidence, with shares taking a significant hit in the wake of the updated forecasts.
The news of further closures places Shoe Zone among the growing list of high street names forced to rethink their operations as customer habits evolve and economic headwinds persist. Residents in affected areas will no doubt be concerned about the impact on local employment and the vitality of their high streets, prompting renewed calls for support for British retailers.
With the British high street continuing to transform, all eyes will be on how Shoe Zone’s strategic moves play out in the coming months, and whether a focus on fewer but better-quality stores can help restore its footing in a notoriously volatile sector.