Shoe Zone has forecast a full-year loss of approximately £1 million after reporting a decline in sales amid ongoing economic challenges. The UK-based footwear retailer announced that revenue fell by 4.5% to £142.4 million for the 53 weeks ending October 3, compared with a profit of £2.4 million in the previous year.

The company attributed the revenue drop to multiple factors, including inflation, rising interest rates, and lower disposable income among consumers, which have collectively dampened shopper confidence. Following the announcement, Shoe Zone's shares dropped by as much as 22%.

Chairman Charles Smith highlighted the difficult economic environment, noting that the combination of cost pressures and weakened consumer sentiment has negatively affected the group's performance. He cited inflation and higher borrowing costs as key contributors to the challenging market conditions facing the retailer.

The latest results underscore the impact of broader economic headwinds on retail companies, as elevated living costs continue to constrain consumer spending. Shoe Zone’s outlook suggests that these pressures may persist, affecting profitability for the remainder of the financial year.