SCOTTISH-based shoe retailer Schuh is closing three stores in Germany, citing changes in the marketplace and highlighting the impact of Brexit.
Schuh, which flagged pressure on profit margins in its broader business amid “difficult trading conditions”, highlighted the fact that Germany had been its first choice for expansion outwith the UK, Channel Islands and Republic of Ireland. Its first German store opening was in Oberhausen in 2015. This was followed by the opening of an outlet in Ruhr Park later that year and the launch of a store in Essen in 2016.
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Explaining its decision to close these stores, which will affect around 75 staff, Schuh said: “Over the past few years, these markets have changed considerably in a constantly evolving retail landscape, not least with the impact of Brexit.”
It noted, while these stores would close on June 22, its German website would continue to trade, with orders fulfilled from its UK warehouses. It said it was open to redeploying staff in Germany to the UK.
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Colin Temple, managing director of Schuh, said: “Since opening, the stores have received exceptional feedback and despite the trading headwinds I am so proud of the achievement of having been able to open in another country in a foreign language with such high acclaim from customers and vendors alike.”
The company, which was acquired by US retailer Genesco in 2011 and employs about 4,300 people, declared that its business had been “recalibrated significantly” over the last 12 months.
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Schuh, which has more than 130 stores, said: “We have experienced challenging sales [and] margin pressure as a result of a highly promotional retail environment and marketplace constraints minimising our ability to leverage fixed property expenses.”
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