Shoezone profits slide as value of its properties decline

UK footwear giant Shoezone reported a drop in profit after the retailer’s 17 stores and properties saw a decline of 2.9 million pounds.

The company said its statutory profit before tax dropped from 9.6 million pounds to 6.7 million pounds after it reported a 2.9m pound writedown on the value of its freehold properties.

Shoe Zone chief executive Anthony Smith said: “Despite it being a difficult year for Shoe Zone, the business has achieved revenue growth, and delivered underlying profit before tax marginally ahead of our revised expectations following our revaluation of freehold property.

The largest UK specialist value footwear retailer said it reassessed the value of its freehold property portfolio to “reflect the current retail property environment”. The company opened 24 stores in the period, while closing 16, bringing its total store portfolio to 500. The company employs approximately 3,500 employees across the UK and the Republic of Ireland.

Of the new stores, 21 openings were the continued roll out of Shoe Zone’s out-of-town Big Box format, two were standard high street branches and one was a hybrid between the two.

“Alongside the continued momentum in Big Box expansion and Digital growth, Town Centre renewal is the third key focus for our refreshed strategy,” noted Smith. “Following a successful trial of four Hybrid stores, in 2020 we plan to convert a further 20 of our traditional stores to this more premium Town Centre Hybrid model.”