Shoe Zone : could close more stores after revenue takes a kicking
May 18, 2021 at 03:21 am EDT
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Shoe Zone saw overall revenue drop to £40.4m in the six months to 3 April, down from £68.9m in the corresponding period a year earlier after lockdown measures saw revenue from physical stores plummet.
In the first half of its financial year store revenue at the shoe retailer stood at just £22.8m, down from £63.3m in the first half of the previous financial year.
All Shoe Zone stores were closed for at least 16 weeks during the period, however digital and warehouse teams operated throughout the lockdown.
Read more: Footwear retailer Shoe Zone suspends dividend until 2025
Revenue from the digital side of the business jumped to £17.6m, up from £5.5m a year previously.
The group saw a statutory loss for the period of £2.6m and will continue to suspend dividend payments.
Shoe Zone reduced its store numbers by 38 during the six months, and today said a full review of individual store viability would continue.
Chief executive Anthony Smith said: “The last 12 months have been like no other in the company’s history. 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.”
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The business also faced supply chain disruption during the period due to the Ever Given/Suez Canal saga.
The post Footwear retailer Shoe Zone could close more stores after revenue takes a kicking appeared first on CityAM.
Shoe Zone plc is a United Kingdom-based footwear retailer. The Company sells a range of footwear for the whole family from over 380 stores nationwide and its Website, shoezone.com, which offers free delivery and free returns to stores. Its new format stores stock approximately 600 styles per season. Its Digital shoehub platform offers the full store range plus approximately 1,500 online exclusive styles per season. It has approximately 323 stores, including 42 Big Box, 93 Hybrid and 188 Original. The Company sells a range of brands, including Skechers, Rieker, Kickers, Lilley & Skinner, Lotus, Wrangler and Heavenly Feet. The Company's distribution center is located in Leicester, England. Its distribution center handles approximately 800,000 pairs of shoes per week. Its United Kingdom distribution network is managed in-house with stock being distributed to stores. Its subsidiaries include Castle Acres Development Limited, Shoe Zone Retail Limited, Zone Property Limited and others.