Shoe Zone closes another 20 shops as losses mount

Shoe Zone has closed an additional 20 shops after warning that the impact of Covid-19 will be felt by the retail industry for “several years” to come.

The retailer, which will now trade from 470 sites, re-opened stores in England last week with distance markings and limits on the number of customers allowed in shops.

During the lockdown, it was forced into “very aggressive” Buy One Get One Free online promotions in order to generate cash as quickly as possible. While these now only apply to selected lines, they continue to have a significant impact on digital gross margins.

The company saved £4 million by cancelling its 2019 dividend and has drawn down two-thirds of the £15 million secured from the Coronavirus Business Interruption Loan Scheme.

Today's loss of £2.7 million for the six months to 4 April included the early impact of Covid-19, with sales up to February ahead 2.6%.

Shoe Zone said: “Whilst the group has taken all possible steps to ensure that the business will survive through the crisis and continue into the future, the impact is likely to continue to be felt for several years.”