Government Budget policies hits Shoe Zone’s profits

Shoe Zone has criticised the government’s “adverse” policies as annual profits have plummeted and earnings will plunge further amid rough trading.

In the year to 27 September pre-tax profits fell by more than £3.3 million compared to £10.1 the year before.

The retailer warned that trading is under pressure at the start of 2025/26, Shoe Zone has blamed the government over their Budget policies as costs are now soaring and there is weaker demand and confidence.

Chairman Charles Smith said, “Trading conditions remained challenging in the first quarter of the new financial year, with revenue down on forecast, reflecting ongoing macro-economic pressures that continue to weigh on consumer confidence resulting in lower footfall on the UK high street, alongside the highly adverse Government fiscal policies.

“The Government’s November 2025 budget included an additional increase in the national living wage, raising our cost base further, with broader measures not materially improving consumer sentiment.”

Smith added, “Persistent inflation, higher interest rates and reduced disposable income contributed to negative economic and consumer sentiment in the UK.

“Sales were good when there was a reason to buy, such as the warm summer and the back-to-school period, however discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on.”