Shoe Zone confirms store closures as Budget costs blamed for 'unviable' branches | Chronicle Live

Shoe Zone confirms store closures as Budget costs blamed for 'unviable' branchesThe retailer said that 'significant additional costs' combined with 'very challenging trading conditions' have

led to the net closure of 26 sitesCommentsCatherine Addison-Swan10:07, 18 Dec 2024Shoe Zone has closed 53 stores and opened 27 across the UK this year(Image: ScunthorpeLive/Donna Clifford)

Shoe Zone has announced that it has had to close "a number of stores" as it blamed the Government's recent Budget on rising costs that have made some branches "unviable".

The footwear retailer, which has 297 stores across the UK and employs around 2,250 staff members, has not confirmed how many stores had shut or the number of workers affected, but previously

revealed that it had closed 26 sites on a net basis over the past year, with 53 closing while 27 opened. The group said Chancellor Rachel Reeves' measures to increase both the minimum wage

and employers' national insurance contributions, had led to "significant additional costs".

‌ Shoe Zone said it had also seen "very challenging trading conditions" since the end of September as shoppers have pulled back spending amid unseasonal weather, adding that consumer

confidence had weakened further since the Budget in October, the PA news agency reports.

‌ The retailer said its annual sales fell 2.7%, which is expected to leave 2023-24 profits at "not less than" £9.6 million against the £16.2 million reported the previous year. Speaking of

increased costs brought about by the Labour Budget, it said: "These additional costs have resulted in the planned closure of a number of stores that have now become unviable."

This is the latest hit to the high street this year, with several well-known chains either reducing their presence on the high street or disappearing together. Just last month, Homebase fell

into administration, putting 49 of its branches at risk of closure and workers facing redundancy after the owner of The Range bought up 70 stores.

Article continues below Earlier this year, The Body Shop closed another 75 of its stores, including two in the North East, after collapsing into administration, resulting in 489 employees

being made redundant. And in the spring, Ted Baker axed 15 stores and 245 jobs after appointing administrators, while high street giants including Boots and Marks & Spencer have also closed

stores.

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