A major British retailer has revealed that it is closing stores in the wake of the government’s announcement of the Budget.
Chancellor Rachel Reeves delivered the controversial new Labour government’s Budget a little over six weeks ago.
Amongst a host of changes, Reeves announced plans to increase both national insurance contributions and the national minimum wage in a move which has been widely unpopular with business.
Now, Shoe Zone, which has 297 stores across the country, have become the first business to announce closures as a direct result of the budget.
A company spokesperson said: ‘These additional costs have resulted in the planned closure of a number of stores that have now become unviable.
‘The combination of the above (increases in insurance and minimum wage) will have a significant impact on our full year figures.;
The company added that it has been experiencing ‘very challenging trading conditions’ since the weather turned, with consumer confidence having also weakened in recent months.
Shoe Zone was also forced to cancel its final shareholder dividend payout for 2023/24 due to its struggles.
A number of Shoe Zone branches have shut already in 2024, with the company originally announcing plans to move to ‘big box and hybrid’ format stores instead of traditional shop fronts.
In late September, news of the retailer’s branch in Burgess Hill, West Sussex, closing left shoppers disappointed.
One resident said: ‘What a bad blow to our little town. Shoe Zone is the only place I can get my size 9 sandals and I don’t travel to other towns.’
Other areas set to lose their local Shoe Zone include Portsmouth and Watford.
The shoe-seller closed a further 13 stores in 2023.
The announcement of even more Shoe Zones closing as we head into 2025 is another worrying sign for the British High Street.
Six thousand retail outlets have shut their doors for good since 2018, say the British Retail Consortium.
Helen Dickinson OBE, the trade association’s chief executive, put the decline of the British high street down to ‘crippling’ business rates and the impact of COVID-19.
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