Shoe Zone, a popular footwear retailer in the UK with nearly 300 stores and over 2,000 employees, has announced a wave of store closures, attributing the decision to mounting cost pressures following the introduction of new budget measures in October. The company emphasized that factors like increased national insurance contributions and a raised minimum wage had rendered certain outlets financially unviable, leading to a downward revision in profit forecasts for the year.
The budget announcement in October 2024, made by Chancellor Rachel Reeves, has had a significant impact on Shoe Zone's operations, prompting the closure of stores that could no longer sustain themselves under the heightened financial burdens. The company's profit expectations for the year have been revised downwards to not less than £5 million, representing a substantial reduction from the initial target of £10 million. This unexpected turn of events has also led to the decision to forgo the payment of a final dividend for 2024, signaling the challenging financial landscape the retailer is currently navigating.