Footwear retailer Shoe Zone could close more stores after revenue takes a kicking
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.
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.”
By mid-morning Shoe Zone’s share price had fallen more than 7 per cent following the results.
The business also faced supply chain disruption during the period due to the Ever Given/Suez Canal saga.