---
title: "Shoe Zone Blames Labour Budget for Store Closures as Profits Plummet"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-12-19T05:40:54+00:00"
modified: "2024-12-19T05:40:54+00:00"
date: 2024-12-19
canonical: "https://stockmark.it/shoe-zone-blames-labour-budget-for-store-closures-as-profits-plummet/"
category: "Business"
categories: ["Business", "Retail"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/shops-sm.jpg?fit=480%2C270&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Shoe Zone Blames Labour Budget for Store Closures as Profits Plummet

**Published:** December 19, 2024
**Author:** Stockmark.IT Website
**Categories:** Business, Retail
**Featured image:** ![A window painted with the words CLOSED DOWN in large, black letters, seen from outside. The glass is misty, obscuring the view of the interior behind it. @ stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/shops-sm.jpg?fit=480%2C270&quality=89&ssl=1)

---

British footwear retailer Shoe Zone has announced plans to close multiple stores, citing significant cost pressures from recent budget measures implemented by Shadow Chancellor Rachel Reeves. The company’s shares plunged 38.5% following the announcement, closing at 85p.

The Leicester-based retailer, operating 297 stores across the UK with approximately 2,250 employees, pointed to increased employers’ national insurance contributions and minimum wage hikes as key factors making numerous locations financially unviable. The challenging trading environment, coupled with weakening consumer confidence post-October budget, has forced the company to revise its profit forecasts dramatically.

Shoe Zone now expects adjusted pre-tax profits for the year ending September 27, 2025, to reach just £5 million, marking a substantial decrease from previous projections of £10 million. The company has also made the decisive move to suspend its final dividend for 2024, reflecting the severity of its financial situation.

The retailer’s struggles extend beyond recent budget impacts, with increased shipping costs due to Red Sea route diversions already affecting profitability. The company’s store portfolio, comprising 112 high street locations and 185 larger format stores, has already witnessed significant restructuring, with 26 net closures in the year to September 28.

Despite maintaining an average annual sales volume of 13.9 million pairs of shoes at approximately £13.30 per pair, market analysts remain divided on the company’s future prospects. While some question the attribution of closures to budget measures, Zeus Capital maintains that Shoe Zone’s disciplined approach to store economics and zero financial debt position could support eventual recovery.

The retailer’s strategic shift towards larger format stores in retail parks continues, though the total number of planned closures remains undisclosed. This development marks a significant turning point for the budget footwear sector, highlighting the broader impacts of recent fiscal policy changes on British retail.

---

**Original URL:** https://stockmark.it/shoe-zone-blames-labour-budget-for-store-closures-as-profits-plummet/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*