Shoe Zone has announced store closure plans in the wake of Chancellor Rachel Reeves’s tax plans as part of her Autumn Budget.
In their latest trading update the company said: “Shoe Zone announces that for the first two months of its financial year and the first half of December, it has experienced very challenging trading conditions, principally a weakening of consumer confidence and unseasonal weather, both of which have decreased revenue and profit.
“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.
“As a result, the Company now expects adjusted profit before tax for the financial year ending 27 September 2025 to be not less than £5.0m, down from previous expectations of £10.0m.
“In addition, and in light of the above, the Company is not proposing to pay a final dividend for the financial year ended 28 September 2024.
“A further trading update will be provided alongside the announcement of our FY2024 annual results on 21 January 2025.”
