Shoe Zone reports 38% profit drop amid store closures

Shoe Zone, a Leicester-based footwear retailer, reported a significant decline in annual profits and sales, with pre-tax profits falling by 38% to £10.1 million for the year ending September 28, 2024, amid challenging trading conditions. The company attributed this drop to weakened consumer confidence, unseasonal weather, and increased costs from higher shipping, energy prices, and wage hikes due to the National Living Wage increase. In response, Shoe Zone has been proactively closing less profitable stores and is refitting existing locations while expanding its online presence, which saw digital sales rise by 13.9% to £35.2 million. As part of its restructuring, the company plans to operate about 280 stores by 2026-2027. Despite the decline, Shoe Zone remains focused on reducing costs and improving operational efficiency. The company announced that the interim dividend paid in August would be its last for the fiscal year due to cash management considerations.