Positive Shoe Zone sees half-year sales rise despite reduced store portfolio

By

Nigel TAYLOR

Published
May 17, 2023

Shoe Zone delivered a “robust and positive performance” in half-year results to 1 April, in the face of “consumer uncertainty and macroeconomic volatility”, the value footwear retailer said Tuesday.

Despite operating 52 fewer stores than a year ago, total revenues still increased 7.9% to £75.4 million with store revenues (from 336 units) up 6.8% to £61.1 million and digital revenue increasing 12.7% to £14.3 million. The strong digital showing was seen across all online channels with additional growth from its online exclusive range and range extensions, it noted.

“The performance further demonstrates the resilience of our business and the success of our ongoing strategy,” said chief executive Anthony Smith.

Given the extent of resizing — closing 41 stores, opening 17 new ones and refitting six, not to mention added digital and restructure costs — it was going to hit the bottom line. Pre-tax profits halved to £1.5 million and adjusted pre-tax profit fell to £2.5 million from £3.1 million a year ago, albeit slightly above expectations. Capital expenditure rose to £5.3 million from £2.3 million.

Smith added: “We have continued to invest in our portfolio with more 'Original' Shoe Zone stores converted to Hybrid formats. The results continue to be very positive, and we continue to look for further opportunities to roll these formats out as planned. 

“Our ultimate goal is a doubling of Big Box locations to approximately 100 and an increase in Hybrid stores to 200 in the medium term.” 

And the Shoe Zone outlook? “We anticipate trading from a similar retail square footage, albeit from a reduced number of locations. We continue to invest in new product lines and additional brands as well as enhancing our [digital] platform with the introduction of a new return's portal, the development of a mobile app and adding new payment options, all of which will improve customer experience.”