Shoezone has announced the closure of 20 stores across the UK, attributing the move to increased costs following the Labour Government's Budget in October 2024. The retailer, which operates 297 stores and employs 2,250 staff, said the Chancellor's decision to raise employers' national insurance contributions and the minimum wage had created “significant additional costs”.
Chief Executive Anthony Smith said the company had faced “very challenging trading conditions”, including weakened consumer confidence and unseasonal weather, which reduced revenue and profit. He added that the Budget had further dampened confidence, making 20 stores unviable. The exact number of affected employees has not been disclosed.
Among the closures already confirmed is a branch on Watford High Street, Hertfordshire, which vacated its premises in January after a prolonged closure process. Other stores earmarked for closure earlier this year included sites in Newton Abbot, Hinckley, and Cromer. Some branches, such as those in Ipswich and Weymouth, have relocated to new-format stores as part of the retailer's estate overhaul.
The closures follow a trend of net store reductions, with 63 branches lost in the year to October 2022 and 26 net closures in the year to September 2024. Despite opening 27 new stores in the latter period, Shoezone reported a 2.7% dip in annual sales, forecasting profits of at least £9.6 million for 2023-24, down from £16.2 million the previous year.
Smith expressed gratitude to staff in affected stores and emphasised the company's commitment to serving customers through its remaining network and online platform. Shoezone also issued a profit warning, its second in two months, after shares fell by up to 49% on Wednesday.
