Shoe Zone to invest in digital strategy as online revenues increase

Shoe Zone, a value footwear retailer in the UK, reported profit before tax declined to 10.1 million pounds, while adjusted profit before tax reduced to 10 million pounds, resulting in earnings per share of 16.04p.

Total revenue declined by 2.7 percent to 161.3 million pounds, driven by a 6.5 percent drop in store revenue to 126.1 million pounds. This decline reflects the company's ongoing store optimisation strategy, which saw the closure of 53 stores. However, this was partially offset by a strong performance in the digital channel, with online revenues increasing by 13.9 percent to 35.2 million pounds.

“We continue our store refit and relocation programme, which should complete by the end of 2026, at which point our capital expenditure will reduce significantly, and we will continue to drive our digital strategy on the back of these solid digital results,” said Charles Smith, chairman of Shoe Zone plc in a statement.

Shoe Zone is actively pursuing a digital-first strategy to capitalise on the growing online demand for footwear. The company also continues its store refit and relocation program, aiming to complete the transformation by the end of 2026. Shoe Zone expects to operate approximately 280 stores by the end of 2026/2027.

The company acknowledges the impact of rising costs, particularly container prices, on its margins. However, it expects these pressures to ease in the second half of the next financial year.

Shoe Zone paid a final and interim dividend of 2.5 pence per share in August 2024.