Shoe Zone suffers fall in profits in challenging year

Shoe Zone’s profit before tax fell to £3.3m, from £10.1m the previous year, in the year to September 27, 2025. Revenue slid to £149.1m from £161.3m.

The retailer said that “trading conditions remain challenging due to macro-economic pressure and higher wages” and this year pre-tax profits are expected to be only £1m.

Store sales fell to £113.1m from £126.1m over the year, while digital revenue inched up to £36m from £35.2m.

Shoe Zone chair Charles Smith said: “This was a challenging year, particularly in the second half, as consumer confidence declined further following the government’s October 2024 Budget, and highly adverse fiscal policies.

“Persistent inflation, higher interest rates, and reduced disposable income contributed to negative economic and consumer sentiment in the UK. Sales were good when there was a reason to buy, such as the warm summer and the back-to-school period, however, discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on.”

He concluded: “Trading conditions remained challenging in the first quarter of the new financial year, with revenue down on forecast, reflecting ongoing macro-economic pressures that continue to weigh on consumer confidence, resulting in lower footfall on the UK high street, alongside the highly adverse government fiscal policies. The government’s November 2025 budget included an additional increase in the National Living Wage, raising our cost base further, with broader measures not materially improving consumer sentiment.”