90 Stores to Close in Next Two Years
- Shoe Zone to close 90 stores over next two years due to Covid-19 impact
- Revenue down by £39m compared to previous year
- Pre-tax loss of £10m-£12m due to store closures
- No dividend expected until at least 2024/25 financial year
- Pension funding agreed until March 2022, additional funds may be needed for legacy schemes
Shoe retailer Shoe Zone has announced plans to close 90 stores over the next 18 to 24 months, citing the ongoing impact of Covid-19 as the reason. The company expects a pre-tax loss between £10m and £12m due to store closures from March 23, 2020 to June 15, 2020. Revenues for the 52-week period were down by approximately £39m compared to the previous year at £122.6m. Shoe Zone closed 40 stores during the pandemic and local lockdowns, leaving them with 460 stores. No dividend is expected until at least the 2024/25 financial year as debt repayment takes priority. Pension funding has been agreed upon until March 2022, but additional funds may be needed for legacy schemes. All new openings are on hold until trading conditions improve.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Shoe Zone’s financial situation and plans to close stores due to the impact of Covid-19. It includes relevant details such as revenue decline, store closures, and future plans. The CEO’s statement adds credibility to the report.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of Covid-19 on Shoe Zone’s business performance and its plans for store closures. It also mentions the company’s financial situation and future outlook. However, it does not delve into broader economic or industry trends or offer much analysis beyond the immediate effects of the pandemic.
Financial Relevance: Yes
Financial Markets Impacted: Shoe Zone’s stock price and other retail stocks may be impacted by the announcement of store closures and reduced revenue.
Financial Rating Justification: The article discusses Shoe Zone’s financial performance, store closures, and future plans due to the COVID-19 pandemic, which has an effect on the company’s financial situation and potentially related stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The company is facing financial challenges due to the ongoing pandemic and related lockdown restrictions, but it’s not considered an extreme event.
www.retailsector.co.uk