Shoe Zone says the balance of its online and in-store sales returned to a more normal pattern in its latest financial year. In-store sales grew by 46.7% in its first recent full year not to be affected by Covid-19 lockdowns, while digital sales fell by 13.6%. Shoe Zone says sales across channels have been positive during the year, especially during its second half, in which the ‘back to school’ peak falls.
The value footwear retailer says in a full-year trading update that revenues of £156.2m in the 52 weeks to October 1 2022 were 31.2% ahead of the previous year, when it had reported revenues of £119.1m.
Shoe Zone says its stores traded for the full 52-week year – up from 36 weeks in its 2021 financial year as a result of Covid-19 closures. As a result, store revenues grew to by 47% to £129.8m from £88.5m last time, but digital sales of £24.6m were 13.6% down from £30.6m last time. Some 16.9% of sales took place online. That, says Shoe Zone, represents a return to a more normal level following the pandemic.
The retailer now expects adjusted pre-tax profits to be not less than £11m, following a £1.4m profit from the sale of 14 freehold stores, and a foreign exchange revaluation gain of £1m.
Shoe Zone traded from 360 retail stores at the end of its financial year – down from 410 a year earlier after closing 63, opening 13 and refitting 11. It now has 271 original format shops, 45 ‘big box’ shops and 44 hybrid format stores.
Shoe Zone chief executive Anthony Smith says: “I am pleased to announce that Shoe Zone had a positive year that included a full 52 weeks trade post pandemic. We continue our strategy to expand our Hybrid and Big Box formats via refits and relocations. Shoe Zone continues to show how resilient it is, with a proven track record of delivering robust results during times of economic uncertainty.”
Shoe Zone is a Leading retailer in RXUK Top500 research.
