Shoe Zone ecommerce thrives while sales and profit fall

Shoe Zone has seen a fall in its first half sales and profit after the value footwear retailer closed some of its loss-making stores.

Revenue reduced by 5.7 per cent to £78.2 million in the six months to 4 April after the planned closure of nine shops in the period. Meanwhile, pre-tax profit decreased to £2 million, which was in line with previous guidance, from £2.7 million in the same period last year.

It added that its full launch on eBay in October 2014 was now delivering “encouraging” results, while sales on Amazon now represent 17 per cent of multichannel revenue.

Anthony Smith, chief executive of Shoe Zone, said, “We have made solid progress across the business in the first half and are particularly pleased with the performance in multichannel, where we saw a 30 per cent increase in revenue. We continue to rationalise our store portfolio, closing loss-making Grade 3 stores and opening more of our larger Grade 1 stores.

“We remain focused on our growth levers: extending and improving our product range to leverage our market leading position in the value sector; driving efficiency in our property portfolio; operational investment in our warehouse facilities; and enhancements to our multi-channel offering.

“Current trading has remained in line with expectations following our April trading update. The board continues to look to the future with confidence.”