Shiekh Shoes shaken by consumers’ move away from malls
23/11/2017
Founder, Shiekh Ellahi, has told Reuters that the group requires new funding because of pressure from institutions it already owes money to, as well as from some of the athletic footwear brands whose shoes the company stocks. He said: “We are struggling because of the situation with the banks and suppliers.”
Reuters said Shiekh Shoes secured $20 million in funding earlier this year but, under pressure from shoe brands who want premium products displayed only in high-end environments, had embarked on an ambitious store-refurbishment plan, under which more than 60 stores have already undergone remodelling.
Unfortunately for Shiekh Shoes, this has occurred just as consumers in the US have reduced their spending in shopping malls, with more and more shoppers’ dollars going to online retailers. According to Reuters, one of the key reasons footwear retail group Payless was able to emerge from bankruptcy protection earlier this year is that it closed around 700 mall-based stores during a restructuring exercise.
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