Shoe Zone reports flat sales and profits
Shoe Zone has reported flat sales and profits in the first half of its financial year as it focuses on growing its big box format stores.
In the six months to 30 March, revenue was £73 million compared to £73.7 million in the same period in the previous year. Pre-tax profit came in at the same level as last year at £1 million.
The retailer said the performance was a reflection of its continuing focus on its growth strategy through the roll out of big box format stores. With the format contributing £5.5 million in revenue in the first half, Shoe Zone is on track to have 33 big box stores operating by the end of May. The retailer is planning to have a total of 45 stores in the format by the end of the year.
Nick Davis, chief executive of Shoe Zone, said: “The first half of our financial year has been positive for the group, trading in line with management’s expectations and achieving profitable revenue growth in our two key growth areas of digital and big box.”
Shoe Zone is also piloting a hybrid store concept in more affluent demographic areas which aims to encapsulate the look and feel of a big box store in a high street or shopping centre environment. The retailer said the initial results of the trial have been encouraging.
Meanwhile, Shoe Zone’s online sales increased by 4.9% to £5 million in the period.
Looking ahead, Davis said: “Trading momentum has continued into the second half, in line with market expectations. With our growth strategy in place, we believe we are favourably insulated against many of the structural sector issues and the board continues to look to the future with confidence.”
Shoe Zone operates 500 stores across the UK and Ireland.
