High street retailer Shoe Zone today became the first company in the sector to reveal that it is closing stores as a direct result of the Budget.
The discount footwear company, which has 297 stores and has 2,250 employees across the UK, issued a profit warning today saying it has experienced “very challenging trading conditions” since October.
It said sales and profits had already been under pressure as a resulting weakening consumer confidence and wet weather in the lead up to the October 30 Budget when market conditions took a further sudden turn for the worse.
The company, which has branches in Holloway, Hackney, Kilburn and Poplar, continued: “Consumer confidence has weakened further following the Government’s Budget in October 2024, and 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.”
Branches known to be closing include Burnham-on-Sea in Somerset, Boscombe in Dorset and Burgess Hill in Sussex.
Shoe Zone now expect profits for the year to 27 September 2025 to be “not less than” £5 million, half the £10 million previously expected.
The store portfolio is made up of 112 high street store and 185 larger format stores, which sell brands such as Skechers, Hush Puppies, Rieker and Lilly & Skinner.
Shoe Zone sells around 13.9 million pairs of shoes a year at an average retail price of around £13.30.
