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Shoe Zone expects annual profits to fall by half after seeing a drop in footfall and revenues during June and July, as higher interest rates and weak consumer confidence continue to weigh on spending.
The footwear retailer now forecasts adjusted profit before tax of about £2.5m for the year ending 27 September 2025, down from earlier guidance of £5m. It has also withdrawn its dividend policy in response to the trading pressures.
In a trading update on 13 August, the company cited a “further weakening in consumer confidence” following the government’s October 2024 budget, combined with persistent inflation, high interest rates and stronger incentives to save – all of which have hit discretionary spending.
Despite the challenging outlook, the company said it remained confident in its strategy, highlighting the opening of its 200th new-format store this month.
Shoe Zone also said it remained debt free and that cash levels were higher than the same period last year.
Shoe Zone operates 271 stores and employs about 2,150 staff across the UK. Its estate includes 74 original high street shops and 198 larger-format outlets, which stock brands such as Skechers, Hush Puppies, Rieker and Lilley & Skinner.
The company said its combined store and digital operations supported a full multi-channel offer. It sells around 13.3 million pairs of shoes each year at an average price of £13.
