Detail Week provides news, analysis, features and opinion about Shoe Zone and the footwear sector.
The Chancellor claims the tax increase is necessary to plug a £22billion “black hole” in the public finances but the move has been slammed as a “tax on jobs” by the business community.
This latest update from Shoe Zone comes amid the recent wave of store closures with 10,500 shops permanently closing last year alone, according to the Centre for Retail Research.
In its latest financial statement, the business admitted it was operating in “very challenging trading conditions” with the pending changes to National Insurance contributing to Shoe Zone’s struggles.
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Shoe Zone to close 20 stores ahead of Labour tax raid: Full list of locations at risk of shutting down
Shoe Zone has confirmed it plans to close 20 or more of its stores across the UK to mitigate the impact of tax changes announced by Chancellor Rachel Reeves in the Autumn Budget. However, the company has not clarified which locations are at risk of being permanently shut down.
Earlier this week, the high street footwear retailer cited the looming hike to the National Insurance rate for employers, which is being raised from 13.8 per cent to 15 per cent, as to why store closures may be a necessity.
Earlier this week, the high street footwear retailer cited the looming hike to the National Insurance rate for employers, which is being raised from 13.8 per cent to 15 per cent, as to why store closures may be a necessity.
The full list of Shoe Zone stores that are closing down
A spokesperson said: “These additional costs have resulted in the planned closure of a number of stores that have now become unviable.”
Shares plunged by as much as 49 per cent this morning as the company cautioned that due to the tough trading and extra wage bill, annual profits would be lower than expected.
Shoe Zone warns on profit as it plans store closures
Shoe Zone has announced that it has seen a decrease in revenue and profit in the first two months of its financial year due to “very challenging” trading conditions.
The footwear retailer said trading was impacted by wet weather and weakened consumer confidence in October, adding that market conditions had deteriorated further since the Government’s budget announcement at the end that month.
In a trading update, Shoe Zone said: “As a result of this budget, the company will also incur significant additional costs due to the increases in National Insurance and the National Living Wage.
“These additional costs have resulted in the planned closure of a number of stores that have now become unviable.
“The combination of the above will have a significant impact on our full year figures.”
Shoe Zone is now expecting its adjusted pre-tax profit for the year ending 27 September 2025 to be not less than £5 million compared to a previous expectation of £10 million.
Full list of Shoe Zone stores at risk of closing as the Labour government’s budget forces the retailer operating 297 shops to shut down UK locations
These additional costs have resulted in the planned closure of a number of stores that have now become unviable,’ the firm said in a financial update this morning.
Other spots in north London, including the neighbourhoods of Holloway and Harrow, will pull down their shutters for the final time.
Further hotspots to be affected are Leeds, York, Newcastle and Sheffield.
A graphic below details each of the Shoe Zone stores in the UK that will soon be closing for the final time.
UK retailer Shoe Zone says December trading conditions ‘very challenging’
LONDON, Dec 18 (Reuters) – Small British discount retailer Shoe Zone (SHOE.L), opens new tab on Wednesday highlighted “very challenging trading conditions” in the first half of December, potentially unsettling nerves across the wider sector with just a week to go in the countdown to Christmas.Shoe Zone said for the first two months of its financial year and the first half of December, it had experienced “very challenging trading conditions, principally a weakening of consumer confidence and unseasonal weather, both of which have decreased revenue and profit.”
The retailer added that consumer confidence had weakened further following the government’s budget in October 2024, and as a result of this budget, it would “also incur significant additional costs due to the increases in National Insurance and the National Living Wage.” Shoe Zone explained that the additional costs meant it planned to close a “number of stores that have now become unviable”. All of the above would therefore have a significant impact on full year figures.
Shoe Zone proposed not paying a final dividend for the financial year ended 28 September 2024. It is set to provide a further trading update alongside the announcement of its full year 2024 annual results on 21 January 2025.ollowing yesterday’s base rate announcement, the Bank of England cited the Budget as contributing to a collapse in consumer confidence which had led to the economy taking a hit.
The central bank’s Monetary Policy Committee (MPC) shared that it was “considering the impact on growth and inflationary pressures from the measures announced in the Autumn Budget”.
Among the changes rolled out in Reeves’s fiscal statement included an increase to the National Living Wage and an overhaul of the inheritance tax (IHT) regime, as well as the proposed National Insurance raid.
Committee members voted six to three for the country’s interest rate to be held at its current level of 4.75 per cent in a blow to mortgage holders and debt borrowers. The Chancellor defended her fiscal agenda following the Bank’s decision.
FAQs
Where can I find store locations?
You can locate the nearest Shoe Zone store using their store finder tool.\
- What are the store opening hours?
Hours vary by location, and details for each store are available online. Most stores open from 9 AM to 5:30 PM, Monday through Saturday.
