BUDGET retailer Shoe Zone reported strong digital growth yesterday, triggering shares to rocket 22 per cent for the London-listed firm.

The company posted pre-tax profits of £9.5m for the year to 2 October, up from a loss of £14.6m in 2020.

Digital was a major growth area for the Leicester-headquartered retailer, with digital sales reaching £30.5m from £19.3m in 2020.

This was buffered by Shoe Zone's online range, Amazon collection and drop ship partners, according to the announcement.

However, Shoe Zone also revealed that it closed 50 "unprofitable" locations, ending the year with 410 stores. Revenue also fell from £122.6m to £119.1m over the same period.

Chief executive Anthony Smith explained that Shoe Zone's average lease length is now less than two years, which gives the firm flexibility rather than a cause for concern.

Smith said: "Property supply continues to outstrip demand and we therefore expect to take advantage of this environment and significantly improve our property portfolio over the medium term."

(c) 2022 City A.M., source Newspaper