Much loved shoe store with 297 shops reveals reason why some are closing down
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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.
![[Well dressed woman walks past a sign for the brand and budget shoe shop Shoezone which currently has it's shutters down for a refit on 24th November 2023 in Birmingham, United Kingdom. (photo by Mike Kemp/In Pictures via Getty Images)]](https://metro.co.uk/wp-content/uploads/2024/10/SEI_224152438-c085.jpg?quality=90&strip=all&w=646)
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.
![[Sign for the brand and budget shoe shop Shoezone which currently is closed a refit on 27th November 2023 in Birmingham, United Kingdom. (photo by Mike Kemp/In Pictures via Getty Images)]](https://metro.co.uk/wp-content/uploads/2024/10/SEI_224152441-c6ba.jpg?quality=90&strip=all&w=646)
‘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.’.
