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Shoe Zone profits decline in 'year of two halves'

Tom Bottomley
21 January 2025

Value footwear retailer Shoe Zone saw profit before tax fall to £10.1 million for the 52 weeks ending 28 September 2024, compared to £16.2 million in the previous year.

Total revenue reduced by 2.7% to £163.3 million, compared to £165.7 million in 2023, trading out of 26 fewer stores.

Digital revenues increased by 13.9% to £35.2 million, versus £30.9 million in the previous year, driven by an increase in conversion due to the introduction of free next day delivery on all Shoe Zone online orders and "strong Amazon sales".

Shoe Zone Chairman, Charles Smith, said: "Shoe Zone had a good year, essentially split into two halves. The first six months saw strong and consistent trading, followed by disappointing store sales, due to the weakening of consumer confidence and unseasonal weather conditions, particularly during peak summer.

"That said, the key back to school trading in the second half was positive, and ahead of the previous year, as were digital sales, which had strong growth for the full period."

Shoe Zone ended the full year trading period trading out of 297 stores, having closed 53 stores, opened 27 new stores and refitted a further 28 existing stores to its new formats, which was "in line with management expectations".

As Shoe Zone refits existing stores to its new formats, "the branded mix will continue to form a higher proportion of our overall sales".

Looking ahead, Shoe Zone will continue to invest in its digital platform and will have had a full year of trading with Google pay, Apple pay and its new mobile App in the next 12 months. It will also have had a full year of trading with its free next delivery, which started in June 2024.

The company says that part of the success of its digital operation is its efficient returns process which is complimented by its extensive network of stores. Shoe Zone has a returns rate of circa 11.4%, with the vast majority of those being returned to stores.


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