The group – which employs around 2,250 staff across 297 stores in the UK – said the Chancellor’s move to increase employers’ national insurance contributions and increase the minimum wage has led to “significant additional costs”.
“These additional costs have resulted in the planned closure of a number of stores that have now become unviable,” it said.
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Shoe Zone said it had also seen “very challenging trading conditions” as shoppers pull back spending and amid unseasonal weather, adding that consumer confidence had weakened further since the Budget in October.
It cautioned that due to the tough trading and extra wage bill, annual profits would be lower than expected, while it also cancelled its final shareholder dividend payout for 2023-24.
It slashed guidance by up to half, warning that underlying pre-tax profits were now set to be not less than £5 million, down from £10 million previously expected for the year to September 27 next year.