Shoe Zone posts drop in first half sales
Shoe Zone’s first half revenues declined to £40.4 million year-on-year from a previous £68.9 million after trading was impacted by the Covid-19 lockdown and disruption to its supply chain.
In the six months to 3 April, the footwear retailer posted a pre-tax loss of £2.6 million compared to a loss of £2.5 million in the first half of the prior year.
While store revenue dropped to £22.8 million from a previous £63.3 million, online sales grew to £17.6 million from last year’s £5.5 million.
Shoe Zone said it was forced to reshape its business in the period in reaction to the difficult trading conditions. It currently operates around 422 stores after closing 38 in the first half. It also revealed that it experienced supply chain disruption due to container shortages and the Ever Given cargo ship getting stuck in the Suez Canal.
Anthony Smith, Shoe Zone chief executive, 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.”
Giving an update on more recent trading, Shoe Zone said its second half started well but has since settled down to a mixed picture of good high street and retail park sales and weaker sales in shopping centres.
Looking ahead, Smith added: “The last 12 months has demonstrated the need to build on the significant successes within our digital business. Digital growth will continue to be a big part of our future strategy along with our focus on big box and hybrid expansion.”