Shoe Zone’s profit declines after ‘difficult’ year
Shoe Zone has seen its annual underlying pre-tax profit decline to £9.6 million from £11.3 million in what it described as a difficult year.
In the 53 weeks to 5 October, revenues edged up 0.9% to £162 million after trade was boosted by the retailer opening more larger Big Box stores in out of town shopping destinations.
Anthony Smith, chief executive of Shoe Zone, said: “Despite it being a difficult year for Shoe Zone, the business has achieved revenue growth, and delivered underlying profit before tax marginally ahead of our revised expectations following our revaluation of freehold property.”
Online growth was strong with revenues increasing to £10.6 million from a previous £9.7 million. During the year, the retailer consolidated its internal resource to create an autonomous digital department.
Shoe Zone ended the year with 500 stores of which 39 were in the Big Box format. The retailer has also been piloting four hybrid stores in town centres where 50% of the Big Box range is sold within a traditional Shoe Zone shop.
Smith added: “Alongside the continued momentum in Big Box expansion and digital growth, town centre renewal is the third key focus for our refreshed strategy. Following a successful trial of four hybrid stores, in 2020 we plan to convert a further 20 of our traditional stores to this more premium town centre hybrid model.”
