Shoe Zone revenue drops in “intensely challenging year”

Shoe Zone
Shoe Zone said it will continue to invest in its people and Shoehub platform in the new financial year

Shoe Zone has seen its total group revenue fall to £119.1 million from £122.6 million in the previous year due to Covid-19 lockdown restrictions.

The retailer’s stores stores traded for around 36 weeks of the period due to the lockdowns.

In the year to October 2, digital revenue rose by 58.5 per cent to £30.6 million and now accounts for 25.7 per cent of revenue compared to 6.5 per cent in 2019.

READ MORE: Shoe Zone faces “significant challenges” as revenues plummet

Shoezone said it has invested in its digital infrastructure and operations since the pandemic struck.

The company is now expecting to report a pre-tax profit of not less than £6.5 million in the year compared to a loss of £14.6 million in the prior 12-month period.

Shoe Zone said it traded positively during the period when the UK was not subject to Covid-19 lockdowns and that sales were particularly strong over the back to school period.

“Shoe Zone has weathered an intensely challenging year due to the Covid-19 pandemic,” chief executive Anthony Smith said.

“The negative impact of this has been largely mitigated due to quick action taken in areas we could control, by reducing costs, continuing and accelerating investment in our digital business and improving operations.

“As a result, we have emerged as a leaner, stronger and more resilient business.

“These are a solid set of preliminary results but there is still uncertainty ahead of us in the next 12 months, not only with the continuing impact of Covid, but also the challenges we face with the global supply chain and inflationary pressures.

“We have seen a minimum of a five-fold increase in container prices over the last 12 months and this will continue to impact us for at least a further six months until the issues being experienced in the whole supply chain return to more sensible levels.”

Shoe Zone said it will continue to invest in its people and Shoehub platform in the new financial year.

It is also planning to increase its number of drop ship partners, market places, exclusive products and brands and will introduce additional payment and delivery options to enhance the customer experience.

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