Shoe Zone has announced a downwards adjustment in its profit expectations for this financial year.
- The company predicts a pre-tax profit of at least £5m, down from an earlier expectation of £10m.
- Challenging trading conditions and a drop in consumer confidence have impacted sales and profits.
- The October Budget has introduced significant additional costs for the company, affecting profitability.
- Other retailers, including Currys and Sainsbury’s, also feel the financial pressure from government policy changes.
Shoe Zone, a key player in the footwear market, has lowered its profit expectations for the financial year ending 27 September 2025. The company now anticipates a pre-tax profit of no less than £5 million, a significant reduction from previous forecasts of £10 million.
The first months of the financial year presented tough trading conditions, marked by a notable dip in consumer confidence. This downturn, exacerbated by unseasonal weather, negatively impacted both sales and profits. The company highlighted these challenges in its recent announcements.
Additionally, the retailer is facing considerable financial pressures due to policy changes introduced in the October Budget. Increases in National Insurance and the National Living Wage are projected to raise operational costs substantially. As a result, Shoe Zone has been forced to consider the closure of several stores now deemed unviable.
Similar challenges are being confronted by other retailers such as Currys, which has reported a prospective increase in costs by as much as £32 million from similar government policy impacts. Likewise, Sainsbury’s has preemptively warned its customers of impending price hikes due to raised National Insurance Contributions.
The broader retail landscape appears strained as companies navigate increased financial burdens amidst uncertain market conditions.
