Shoe Zone points to Iran war as it warns of loss

High street retailer Shoe Zone has warned it is set to report an annual loss, with the company blaming the slump in part due to war in the Middle East.

The chain, which has 259 stores nationwide and is headquartered in Leicester, said the Iran conflict and recent Budgets at home had "increased customer caution".

Shoe Zone, which employs about 2,000 people, said it expects a pre-tax loss of between £1m and £2m for the year to October 3.

The firm said "macroeconomic factors" had increased caution among shoppers, which had resulted in lower footfall and "less discretionary spend".

The company added that it had also led to "additional costs such as container prices and transportation costs."

Shares in the group plunged by more than a fifth, falling 22%, in morning trading on Wednesday to its lowest level in more than five years.

Budget clothing chain Primark revealed on Tuesday that it had seen weaker trading in April as pressure from the Middle East conflict weighed on shoppers.

Listen to BBC Radio Leicester on Sounds and follow BBC Leicester on Facebook, on X, or on Instagram. Send your story ideas to eastmidsnews@bbc.co.uk or via WhatsApp on 0808 100 2210.