Shoe Zone to Close Stores Citing Budget-Driven Cost Increases

The UK retailer blames rising national insurance and minimum wage costs for making some locations unviable, issuing a profit warning for 2025.

Shoe Zone announced plans to close stores, citing significant cost increases from the October 2024 UK Budget, including higher employer national insurance contributions and an increased national living wage.
The company forecasts a 50% drop in pre-tax profits for the 2025 financial year, revising expectations to £5 million from the previously anticipated £10 million.
Weakened consumer confidence, unseasonal weather, and challenging trading conditions have further impacted sales and profitability, according to the retailer.
Shares in Shoe Zone fell sharply by up to 49%, with the company also suspending its final dividend payout for the 2023-2024 financial year.
While the exact number of store closures remains unspecified, the company has already been reducing its footprint, closing 26 stores on a net basis in the past year.