Shoe Zone lowers profit expectations for the upcoming fiscal year, citing various external pressures.
- The company’s pre-tax profit forecast drops from £10 million to no less than £5 million.
- Challenges include weakened consumer confidence and unusual weather patterns impacting sales.
- Additional burdens from increased National Insurance and Living Wage following the October Budget.
- Store closures planned due to rising operational costs and unviability.
Shoe Zone, a notable player in the footwear retail sector, has revised its profit forecast downward for the fiscal year ending September 27, 2025. Initially anticipating a £10 million pre-tax profit, the company now expects figures to be no less than £5 million. This adjustment reflects a series of external factors impacting the business.
The early months of Shoe Zone’s financial year have been marked by significant hurdles, notably a decline in consumer confidence and unusual weather conditions. These elements have contributed to depressed sales figures, forcing the company to adjust its financial projections accordingly.
Further compounding these issues are the financial implications of the October Budget. The retailer is facing considerable additional costs due to increased National Insurance contributions and the rise in the National Living Wage. These government-mandated changes are exerting additional pressure on Shoe Zone’s operational budget.
In response to these mounting financial pressures, Shoe Zone plans to close several stores that have become financially unviable. This decision underscores the impact that rising operational costs are having on the company’s retail footprint, with closures being a necessary step to manage expenses.
It’s important to note that Shoe Zone is not alone in navigating these economic challenges. Other retailers, such as Currys and Sainsbury’s, are similarly affected by recent policy changes, highlighting a broader trend of cost increases across the retail sector.
Shoe Zone’s revised profit expectations reflect ongoing economic challenges, with strategic adjustments necessary to navigate current conditions.
