Shoe Zone closures: UK footwear retailer announces plans to close several 'unviable' branches after tax hikes

In a trading update released today, the company cited "very challenging trading conditions" in the initial months of the financial year, worsened by declining consumer confidence following the October Budget.

The Budget introduced increases in employer National Insurance Contributions (NICs) and the National Living Wage, imposing additional financial burdens on businesses. Shoe Zone said: "These additional costs have resulted in the planned closure of a number of stores that have now become unviable."

Therefore, the retailer has revised its profit expectations for the financial year ending September 2025, anticipating a reduction from £10 million to approximately £5 million. Additionally, the company announced it would not distribute a final dividend for the financial year ending September 2024.

While the exact number of store closures has not been specified, recent reports indicate that Shoe Zone has been actively closing loss-making stores. In the year leading up to September 28, the company closed 53 stores and opened 27, resulting in a net loss of 26 locations. Specific closures include the Burnham-On-Sea store, scheduled to shut in February 2025, and the Boscombe branch in Bournemouth, which is also set to close, though the exact date remains unconfirmed.

The retailer employs approximately 2,250 staff across its UK stores.