Shoe Zone to close stores as direct result of government budget

19 December 2024, 10:26 | Updated: 19 December 2024, 13:47

High street retailer Shoe Zone has announced it will close stores, in a move it claims is due to the impact of the Autumn budget.

In its latest trading update, the discount footwear company said it had experienced "very challenging" conditions recently, due to weakened consumer confidence and bad weather.

On top of that, it said it would incur "significant additional costs" due to the increases in employer national insurance contributions and the national living wage set out by the chancellor in the budget.

Money latest: Pubs running out of Guinness and we know who to (partly) blame

"These additional costs have resulted in the planned closure of a number of stores that have now become unviable," the company said.

"The combination of the above will have a significant impact on our full-year figures."

It expects its profit before tax for the financial year ending in September 2025 to be "not less than" £5m, down from previous expectations of £10m, and it also cancelled its final shareholder dividend payout for 2023-24.

It has 297 stores nationwide and employs around 2,250 staff.

(c) Sky News 2024: Shoe Zone to close stores as direct result of government budget