The corporate has blamed authorities insurance policies and the continuing battle within the Center East for his or her scenario.
The agency reported current losses of over £5 million (Picture: Getty)
Shoe Zone has shut 14 shops throughout the UK after reporting losses of over £5 million. The footwear chain revealed that its retailers have shut within the final six months following a interval of financial battle.
Shoe Zone, which operates 259 shops in Britain, has plunged right into a £5.3 million loss earlier than tax for the 26 weeks to March 28. Bosses have confirmed that 14 websites have shut with losses hitting nearly double the £2.3 million reported throughout the identical interval in 2025. In addition to tough buying and selling circumstances, together with a drop in shopper spending, the corporate lately blamed the stoop on the continuing battle within the Center East. Shoe Zone, which is headquartered in Leicester and employs round 2,000 individuals, mentioned the battle had “elevated buyer warning” in addition to “extra prices equivalent to container costs and transportation prices.”
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As reported by The Solar, the corporate’s revenues dropped by 12% to £62.9 million over the interval resulting in March 28. The model has additionally traded out of 19 fewer shops in comparison with 12 months in the past.
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Shoe Zone now expects a full-year lack of between £1 million and £2 million because the buying and selling atmosphere continues to be powerful. Regardless of the 14 closures, the agency hopes to maintain investing in its remaining branches with an elevated give attention to social media to spice up gross sales, together with the brand new TikTok store.
Charles Smith, chairman of Shoe Zone, mentioned the corporate is battling financial difficulties and a drop in shopper confidence. He warned that the scenario has worsened following the Labour Authorities’s transfer to extend the Nationwide Dwelling Wage and Nationwide Insurance coverage contributions.
Shoe Zone has shut 14 shops within the final 6 months (Picture: PA)
In the meantime, the battle in Iran has additionally brought about delivery and transport costs to surge. Wider strain brought on by the battle additionally weighs on customers with much less disposable cash.
The corporate mentioned commerce continues to be “negatively impacted by an extra weakening in shopper confidence, following the Authorities’s final two price range bulletins, in addition to the geo-political points within the Center East”.
Shoe Zone bosses are additionally slashing the scale of their distribution centre. It has been confirmed they’re leaving three out of six leases to mirror the drop in shops.
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