One of Britain's leading bargain footwear retailers has announced a significant reduction in its store portfolio following a sharp decline in sales.
A Challenging Year for Retail
Shoe Zone has confirmed the closure of 39 stores across the United Kingdom over the past financial year. The company's store count decreased from 297 to 269 during the 52 weeks leading to September 2025.
This restructuring comes as the retailer reported a 7.6% drop in revenues, with total earnings falling to £149.1 million. The figures highlight the ongoing difficulties facing the British high street as economic pressures continue to affect consumer behaviour.
Economic Pressures Take Their Toll
Company chairman Charles Smith described the period as particularly challenging, especially during the second half of the year. He pointed to declining consumer confidence following the Government's October 2024 budget as a major contributing factor.
In a statement, Smith explained: "With persistent inflation, higher interest rates and reduced levels of disposable income all contributing to general negative economic and consumer sentiment in the UK."
The retailer noted that sales showed improvement during specific promotional periods, including the warm summer months and the Back-To-School season. However, overall discretionary spending remained subdued as customers exercised greater caution with their expenditures.
Broader Retail Sector Impact
The challenges facing Shoe Zone reflect wider trends affecting the UK retail landscape. The chain specifically cited increased National Insurance contributions for employers as a factor in closing what it described as "unviable" locations.
Twenty-one of the store closures occurred in the first half of the financial year alone, indicating the speed at which conditions deteriorated.
Other major retailers are facing similar pressures. Fashion chain New Look has warned it may shut nearly 100 shops in response to National Insurance increases that took effect in April. Meanwhile, River Island plans to close more than 33 locations as part of restructuring efforts to maintain business viability.
Even larger retailers including Morrisons, Aldi and JD Sports have expressed concerns about potential business rate increases affecting their larger store formats, suggesting the retail sector's challenges are far from over.
