Schuh seeks property cost cuts

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Schuh calls in Capa to examine ways of cutting its rental bill & occupancy costs
Schuh has already closed down all three of its German stores in order to focus on its British & Irish markets.
// Schuh calls in consultancy group Capa to examine ways of cutting its rental bill & occupancy costs
// It has also been working with its longterm adviser KPMG on options
// Schuh has 132 locations in the UK and Ireland

Schuh is the latest retailer to seek rent reductions after it reportedly drafted in a consultancy firm to explore how it can save money across its 132-strong store estate.

According to The Times, the footwear retailer called in retail property consultants from Capa to carry out a full audit of its property costs to assess where money can be saved.

”As a business we remain focused on delivering initiatives to further enhance customer experience, including our new transformational TwentyTwenty store design, CRM personalisation, driving brand awareness and continuing to offer our customers their favourite footwear brands and styles,” the retailer said in a statement.

Schuh has been facing many of the same problems that have confronted a slew of other retailers in the fashion sector.

Last month, it appointed KPMG to asses its options following a period of tough trading.

At the time, it was reported that a CVA was not part of the options.

In June, Schuh closed down all three of its German stores in order to focus on its British and Irish markets.

In its most recent full-year report, for the period ending February 3, 2018, Schuh saw annual pre-tax profits drop 9.6 per cent to £15 million.

However, sales in that same period rose 9.8 per cent to £308.5 million.

The retailer attributed the performance to an “overtly promotional retail market”.

Founded in 1981, Schuh is headquartered in Scotland and operates 132 stores in the UK, Republic of Ireland and Channel Islands.

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