Shoe Zone said that multichannel sales grew by 21% to £4.9m in a half-year in which profits grew to £1m.
The update came as the discount footwear retailer, ranked Top100 in IRUK Top500 research, reported revenue of £73.7m in the six months to March 31 2018 – 1.1% up on the same time last year. Pre-tax profits of £1m were ahead of first-half profits of £0.3m last time.
The boost, said the retailer, came as it saved £100,000 where shop leases were renewed, with rents on those stores down by an average of 22%. By the end of the half-year it had 12 big box format stores. It bought more of its stock direct. During the half-year, 87.1% of its orders were placed directly with overseas factories.
Chief executive Nick Davis said the retailer had benefited from the strategic focus on its property portfolio. “We are delighted that multichannel revenue has continued to grow profitably, especially via mobile, which remains an ongoing area of development for the business,” he said. “Trading momentum has continued Into the second half, in line with expectations for the full year. With our growth strategy in place, we believe we are favourably insulted against many of the structural sector issues and the board remains confident of the outlook for Shoe Zone.”
Here’s what else Shoe Zone, which trades online and from about 500 stores, said about its multichannel strategy.
Mobile and crosschannel
Multichannel sales grew by 21% in the first half of the year, contributing £1.2m. More than three quarters (79%) of online visits were via mobile devices, with 69% of online revenue via mobile. “We continue to develop mobile technology as the primary focus of our digital strategy,” said Shoe Zone in today’s statement.
Email, said the company, was a “strong source” of income, with revenue up by 26.8% after increasing email volumes by 6.3%. “Significant work is on-going to identify and focus on engaged customers, attempt to re-engage those that have not responded in some time to emails and then remove those customers who do not,” said Shoe Zone.