// Shoe Zone revenue drops 41% in 6 months to April 3
// Shoe Zone permanently closed 38 stores in the six months
// The retailer said lockdowns impacted store revenues
Shoe Zone has recorded a revenue decline as losses increased during the six months to April 3.
The shoe retailer’s revenues fell by 41 per cent year-on-year to £40.4 million while recording a statutory loss before tax of £2.6 million as a result of tight cost control and increase in digital.
Store revenues dropped 63 per cent to £22.8 million as store closures during enforced lockdowns impacted Shoe Zone’s trading.
Meanwhile, digital revenue more than tripled, accounting for £17.6 million compared to £5.5 million for the first six months in 2020’s fiscal year.
Shoe Zone permanently closed 38 stores in the six months, refitted three stores and relocated one.
Administration and distribution costs were higher than last year due to £3.1 million additional expenditure relating to the increase in digital sales.
Shoe Zone has a net cash balance of £4.1 million, which has grown from £3.6 million last year.
The business took advantage of the government furlough scheme, the business rates holiday, retail grants and the ability to delay VAT.
Compared to last year, the company is behind on rental payments and is negotiating better terms with landlords. Shoe Zone also announced that it is not paying a dividend.
“The last 12 months have been like no other in the company’s history,” Shoe Zone chief executive Anthony Smith said.
“The Covid-19 pandemic has had a huge social and economic impact around the world and has led to huge consequences for all businesses, including our own, as we have had to adapt and change to meet the significant challenges in the last year and I thank our loyal and committed staff during this period.
“However, we have come through this challenging period and are now in position to continue our strategy going forward, with the assumption that no further lockdowns are required.”