High street retailer Shoe Zone has warned that the Middle East conflict and recent budget announcements are pushing up costs and hitting consumer confidence, as it reported a widening half-year loss.
The chain, which operates 259 stores, posted a pre-tax loss of £5.3 million for the six months to March 28, compared with a £2.3 million loss in the same period last year. Revenues fell 12% to £62.9 million, partly due to the closure of 19 shops over the past year.
Shoe Zone blamed slower trading on consumers becoming less willing to spend following two government budgets and the war in Iran. The conflict has also driven up transportation costs and container shipping prices, which are expected to weigh on financial performance for the remainder of the year.
The retailer now expects to report an adjusted pre-tax loss of between £1 million and £2 million for the full year, having previously guided towards a £1 million profit. The disruption to international shipping routes, including the Strait of Hormuz, has led to a surge in fuel costs affecting many businesses.
Shoe Zone is continuing its store relocation and revamp programme, aiming to complete the shift to larger formats by the end of 2027. It is also reducing the size of its distribution centre to align with its smaller store estate.
