Expansion drive and poorer exchange rates hits Leicester footwear giant

Leicester footwear giant Shoe Zone has announced its preliminary results for the year, revealing declines in revenue and profit following continued investment in its store estate.

The company, which opened 21 new stores during the period, including six with the Big Box format, and refurbishment at a further 29 locations also closed a number of loss-making stores.

This, along with poorer exchange rates has led to annual revenues declining to £157.8m from £159.8m a year earlier, translating into a profit before tax of £9.5m (from £10.3m previously) primarily due to the adverse impact of foreign exchange on imported goods into the UK.

Nick Davis, Chief Executive of Shoe Zone, seems bullish though despite the results and says: “I am pleased with the Group’s performance in what continues to be a challenging retail environment. We are still well positioned in the market given our strong value retail proposition and continue to manage our store portfolio successfully through our ongoing store rationalisation and refit programme. Following a successful trial of the Big Box concept during 2017, we are now targeting 10 new Big Box stores per year in the medium term.”

“We continue to make good progress against our strategic objectives and have made a solid start to the year with trading in line with expectations. The Board remains positive about the outlook for the Group for the remainder of the year.”