Shoe Zone, a major UK shoe chain with over 250 stores, has launched a closing down sale at its Carlisle outlet as the company continues to struggle with falling sales and widening losses. The chain has shut 14 stores in the past six months, with sales dropping 12% year-on-year.
Losses Double Amid Challenging Conditions
The retailer reported losses exceeding £5.3 million, more than double the previous year's figure. A spokesperson for Shoe Zone attributed the losses to three key factors: national Insurance contributions, increased shipping costs linked to the conflict in the Middle East, and weaker consumer confidence.
"Challenging trading conditions, principally due to a continued weakening in consumer confidence, the last two Budgets and political issues in the Middle East," the spokesperson said. "These macro-economic factors have increased customer caution, leading to lower footfall with a reduction in revenue and profit."
Shift from High Street to Retail Parks
Shoe Zone, which employs over 2,000 people across the UK, has been moving away from traditional high street locations to focus on retail parks. The company's portfolio now consists of 53 smaller high street stores and 206 larger units. The Carlisle store closure is part of this ongoing restructuring.
The company expects a full-year loss of between £1 million and £2 million as difficult trading conditions persist. Closing down signs have been displayed in the Carlisle store window, signaling the end of its operations.
