Another blow to north high streets feared as shoe chain predicts 90 shops will close
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Footwear retailer Shoe Zone – which has shops in Inverness and Elgin – has issued a warning that up to 90 of its stores could shut over the next 18 months.
Chief executive Alistair Smith warned that a fifth of the company's 460 branches are at risk and said 45 stores could close this year with another 45 to follow the year after
Mr Smith said the Government's decision to suspend business rates during the Covid-19 crisis had helped save high street stores, but warned the reintroduction of what he labelled an antiquated and unfair business rates system in April 2021 would force shop closures.
The company's rates as a proportion of rent had more than doubled over 10 years from 26.4 per cent in 2009 to 54.3 per cent in 2019 and were forecast to be close to 60 per cent in 2021.
"This is unsustainable for most high street retailers and closures will continue unabated until the Government makes substantial changes," Mr Smith stated.
The company said revenues dropped by more than £39 million to £122.6 million in the financial year that ended this month and although online sales have doubled, this has not been enough to offset a fall in shop sales to eight-tenths of their previous levels.
Shoe Zone now expects to report a pre-tax loss of £10-£12 million for the financial year.
