Footwear retailer Shoe Zone has launched a scathing attack on “highly adverse” government policies after reporting a dramatic collapse in annual profits and cautioning that earnings are poised to plummet further amid challenging market conditions. The high street stalwart witnessed its share price nosedive by 22% during Tuesday morning trading following the disclosure that pre-tax profits had crashed by more than two-thirds to £3.3 million in the year ending September 27, a sharp decline from £10.1 million the year before.
The company stated that trading pressures persisted into the opening months of 2025-26, hampered by fragile consumer confidence, whilst pointing the finger at Government budget decisions for driving costs skyward and dampening shopper expenditure. The business is projecting profits will slide to approximately £1 million in the year ending October – representing a 70% year-on-year decline.
Chairman Charles Smith said: “Trading conditions remained challenging in the first quarter of the new financial year, with revenue down on forecast, reflecting ongoing macro-economic pressures that continue to weigh on consumer confidence resulting in lower footfall on the UK high street, alongside the highly adverse Government fiscal policies.
“The Government’s November 2025 budget included an additional increase in the national living wage, raising our cost base further, with broader measures not materially improving consumer sentiment.”
The retailer has witnessed its share price plummet to a five-year low in recent months as trading difficulties have intensified. Store sales fell 10.3% to £113.1 million during 2024-25, with the company ending the year operating around 269 stores – a net reduction of 28 locations.
