Shoe Zone announces store closures with 13 outlets in Greater Manchester possibly affected

Shoe Zone said it has shut several stores due to rising wage costs following the recent Budget measures, and has issued another profit warning. The retailer, which employs around 2,250 staff across 297 UK stores, cited the Chancellor's increase in employers' national insurance contributions and the minimum wage as the reason for the "significant additional costs", the Press Association reports.

“These additional costs have resulted in the planned closure of a number of stores that have now become unviable,” it said. It's not been reported how many or which stores had shut or the number of workers affected.

Potentially employees of Shoe Zone in Greater Manchester could be hit hard as there are 13 stores across the region, including Rochdale, Wigan, Bolton, Bury, Oldham, Stockport, Ashton-under-Lyne and Manchester.

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But the group has already been closing loss-making stores over the past year, revealing in October that 26 sites had been shut on a net basis – 53 closed, less 27 opened – in the year to September 28.

Shoe Zone also reported "very challenging trading conditions" since September, with unseasonal weather and weakened consumer confidence contributing to the decline. The company's shares plummeted by up to 49% on Wednesday morning as it reduced its annual profit forecast and cancelled its final dividend payout for 2023-24.

The revised guidance indicates that underlying pre-tax profits will be at least £5 million, down from the previously expected £10 million for the year to September 27 next year. Shoe Zone has issued a profit warning, the second in just two months, following its lowered guidance back in