Shoe Zone warns of £1 million loss as sales fall 4.5%

The retailer cited weaker consumer confidence, higher inflation and shop closures as the main drivers of the downturn.

By Felo News Desk · Published Tue, 27 Oct 2026 11:08:33 GMT

Shoe Zone told investors on Thursday that it expects an underlying loss of about £1 million for the full year, after a 4.5% fall in revenue to £142.4 million for the 53 weeks to 3 October.

What happened

The company said revenue fell to £142.4 million, a 4.5% decline on the previous year, and shares dropped as much as 22% after the announcement. It warned that the autumn/winter season had been slower than expected, affecting the final weeks of its financial year and continuing into the first quarter of the next year.

What the reports add

Both the Independent and the Evening Standard noted that the loss follows a profit of £2.4 million in the prior year.
They highlighted that the retailer attributed higher fuel and transportation costs, as well as rising container prices and a weaker sterling against the dollar, to the ongoing Iran war conflict.
Both outlets quoted the company’s statement that it is closely monitoring the macro‑ and geo‑economic environment and awaiting the outcome of the Government’s October 2026 Budget.
The reports repeated the detail that the store estate fell to 251 stores at year‑end, down from 269 in October 2025, and that the plan is to remodel 211 larger‑format stores and 40 original high‑street stores by the end of 2027.

What was said

Chairman Charles Smith said, “This was a challenging year, particularly in the first half, as consumer confidence continued to be weak, and fell further following the Government’s November 2025 budget, with persistent inflation, higher interest rates remaining elevated and reduced levels of disposable income all contributing to a generally negative economic and consumer sentiment in the UK.”

He added, “Sales were good when there was a clear reason to buy, such as the warm summer and the Back‑To‑School season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.”

On external pressures, the company said, “We continue to monitor the macro and geo‑economic/political environment closely and await the outcome of the Government’s October 2026 Budget. We have recently seen an increase in container prices and a weakening of Sterling to Dollar exchange rate, as well as an increase in fuel prices, all of which could negatively impact trading.”

How it came about

Shoe Zone’s performance follows a period of cost pressures and a slowdown in shopper confidence that the company highlighted in its recent earnings update. The retailer is also reducing its store estate, which fell to 251 stores at year‑end from 269 in October 2025, while planning to remodel 211 larger‑format stores and 40 original high‑street stores by the end of 2027. It cited the Iran war conflict’s impact on fuel, transportation and container costs as additional headwinds.

Key facts

Shoe Zone expects an underlying loss of around £1 million for the full year. (independent.co.uk)
Revenue fell 4.5% to £142.4 million for the 53 weeks to 3 October. (independent.co.uk)
Shares fell up to 22% after the announcement. (independent.co.uk)
The store estate reduced to 251 stores at year‑end, down from 269 in October 2025. (independent.co.uk)
Chairman Charles Smith cited weak consumer confidence and higher inflation as key factors. (independent.co.uk)