Uncertain future for Shoe Zone stores across Derbyshire as high street retailer announces closures
Shoe Zone has announced that stores across the country will be closed after the Government’s budget led to “significant additional costs” – leaving the future of several Derbyshire branches uncertain.
High street retailer Shoe Zone has confirmed that it will close a number of stores across the UK.
The company employs more than 2,000 staff across almost 300 stores across the country - including branches in Chesterfield, Heanor, Ilkeston and Derby.
The firm said that the Government's recently-announced minimum wage rise, along with increased employer national insurance contributions, has led to “significant additional costs.”
A spokesperson added: “These additional costs have resulted in the planned closure of a number of stores that have now become unviable.”
Shoe Zone has yet to comment further on their plans. The business has not revealed how many stores will be closed, which locations will shut down, or how many employees will be impacted.
The business has faced what it described as “very challenging trading conditions” since September of this year - citing unseasonal weather and falling consumer confidence as factors behind this difficult period.
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While 27 Shoe Zone stores have opened over the last year, another 53 loss-making branches have been shut down - meaning a net loss of 26 locations across the country.
Shoe Zone’s share price fell by up to 49% this morning (Wednesday, December 18), with the company reducing its annual profit forecast and cancelling its final dividend payout for 2023-24.