Cost inflation has compounded the problems facing the UK’s footwear specialists. Despite rising costs, footwear retailers are unable to raise prices due to the high level of competition in the market – particularly from clothing retailers. As a result, even the UK’s largest footwear specialists continue to suffer despite shoppers’ growing appetite for new footwear.

According to a new report of the UK’s Top 10 footwear specialists, eight either saw profit margins fall or made a loss during 2006, and in 2007 this trend will have continued for most specialists. Indeed, footwear chain Dolcis has now been placed in administration – becoming 2008’s first high profile casualty in the sector. One of the biggest problems plaguing footwear specialists is cost inflation, not least from the EU anti-dumping tariffs, which exacerbated more general retail issues of higher rents, fuel costs and energy prices.

Continue reading “Footwear Retailers Suffer Despite UK’s Growing Love of Shoes” »