Shoe Zone Expects £1m Loss as Annual Sales Fall 4.5%

British footwear retailer Shoe Zone expects an adjusted loss before tax of £1m for the 53 weeks to 3 October 2026, after earning a £2.4m profit the year before.

In an unaudited full-year trading update issued on the morning of 27 October, the company also reported a 4.5% year-on-year decline in revenue, to £142.4m.

Shoe Zone traded out of 18 fewer stores during the year, a fall of 6.7%, and closed the period with 251 stores. It blamed the sales dip on a "continued decline" in consumer confidence and "general negativity in the UK economy". Lower sales combined with increases in National Insurance and the National Living Wage to weigh on profit.

Subdued outlook

Looking ahead, Shoe Zone expects trading conditions to "remain subdued" and said the start of autumn/winter has been "slower than expected". It is watching the Budget due on 28 October, and pointed to recent increases in container and fuel prices that could "negatively impact trading".

Chair Charles Smith described "a challenging year, particularly in the first half", as consumer confidence stayed weak and fell further after the government's November 2025 budget. He listed persistent inflation, elevated interest rates and reduced disposable income among the factors behind a generally negative economic and consumer mood in the UK. Sales were good when there was a clear reason to buy, such as the warm summer and the back-to-school season, but overall discretionary spending remains subdued as consumers are more cautious about what they spend.

Digital revenue was in line with last year. The strategy of refitting and relocating stores into the company's larger format continued, though more slowly as the project nears its end, with 211 conversions completed. Net cash levels improved year on year. A more detailed update will follow with final results in January 2027, Smith said.

Source: Drapers