Shoe Zone, the beleaguered UK footwear retailer, has pinned the blame for a fresh wave of store closures on cost pressures stemming from October’s budget measures.
The Leicester-headquartered chain, which currently employs around 2,250 staff across 297 stores, said new financial burdens—especially higher national insurance contributions and an increased minimum wage—had pushed some outlets beyond the point of viability.
In a statement underscoring “very challenging trading conditions”, the company highlighted strained consumer confidence following the Chancellor’s latest budget, weaker-than-expected spending by shoppers, and poor weather affecting footfall. Together, these factors forced Shoe Zone to downgrade its profit expectations for the year to 27th September 2025 to “not less than £5 million”—roughly half its previous target of £10 million.
“This year’s budget, announced by Rachel Reeves in October 2024, has intensified cost pressures and impacted consumer sentiment. As a result, certain stores can no longer be maintained,” Shoe Zone said. The retailer confirmed it would not pay a final dividend for 2024.
Investors reacted sharply, sending shares down by 38.5 per cent to 85p. This further decline caps a challenging year, with the stock having fallen by two thirds over the past twelve months.
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