Shoezone to “significantly improve” property portfolio
Shoezone has said it expects to “significantly improve” its store portfolio over the medium term as property supply “continues to outstrip demand”.
This comes as the footwear retailer releases its final results for the 2024 financial year, a period during which it closed 53 stores, opened in 27 new locations, and refitted a further 28 stores.
As of September 2024 – the end of the retailer’s financial year – Shoezone traded out of 297 stores, including 185 new format, larger stores and 112 ‘original’ stores. This financial year the retailer expects to relocate or open a further 17 stores and continue to close a number of older stores, and said it will refit a minimum of nine stores to its new format.
Shoezone said it will continue to rollout its larger store format by targeting key towns for conversion or relocation. The retailer is aiming to operate around 280 stores in total by the end of 2026/27, with all ‘original’ stores having been refitted, relocated or closed.
The retailer’s stores currently have a short average lease length of 2.5 years, which it said gives the “opportunity and flexibility to respond to any changes in any retail location at short notice”.
Shoezone had a total capital expenditure of £11.5m during the year, the majority of which was used for its refit and relocation programme, which was partly offset by around £1.4m of rent-free periods given by landlords.
The retailer also said it had achieved rent reductions on 35 store renewals of £0.4m on an annualised basis.
Shoezone said 2024 had been a year of “two halves”, with the first six months seeing strong and consistent trading followed by a period of poorer store sales.
Profit before tax was £10.1m for the period, down from £16.2m in 2023. Total revenue also declined, by 2.7% year-on-year to £161.3m, although Shoezone had traded out of 26 fewer stores.