UK high street giant hammers Rachel Reeves’ Budget | UK | News
A. main street Giant blamed Rachel Reeves‘ ‘Extremely negative’ The budget takes measures against falling profits. Retailer Footwear District has warned earnings will fall again due to tough trading.
The chain saw its shares fall 22% in morning trade on Tuesday after it announced pre-tax profits had fallen by more than two-thirds to £3.3 million in the year to September 27, from £10.1 million the previous year. He said trade remains under pressure at the start of 2025-26 due to weak consumer confidence. Shoe Zone said the Budget measures were pushing up costs and suppressing shoppers’ spending.
Profits are forecast to fall to around £1 million by October; This means an annual decrease of 70%.
Charles Smith, Head of Footwear Region, said: “Trading conditions remained challenging in the first quarter of the new financial year, with revenue falling short of forecasts, reflecting highly negative Government fiscal policies as well as ongoing macroeconomic pressures that continue to weigh on consumer confidence, resulting in fewer footfalls on the UK high street.
“The government’s November 2025 budget included a further increase in the National Living Wage, further increasing our cost base; broader measures did not materially improve consumer sentiment.”
In November, the Government announced that the National Living Wage for those aged 21 and over would rise to £12.71 per hour, an increase for workers but with business life negatively affected.
Shoe Zone has seen its shares fall to a five-year low in recent months as business woes deepen.
Store sales fell 10.3% from 2024-25 to £113.1 million, ending the year with 28 fewer stores on a net basis, for a total of 269 stores. The retailer closed 39 stores but opened 11 and converted six to a larger format.
Mr Smith said Government policy had carried the weight of the previous year but other factors had also affected trade.
He said: “Persistent inflation, high interest rates and declining disposable income have contributed to negative economic and consumer sentiment in the UK.
“Sales were good when there was a reason to buy (for example, hot summer and back-to-school season). But discretionary spending remained low as consumers became more careful about what they spend money on.”
