Retailer steps out of the red as turnaround strategy delivers results

Hotter shoes factory, part of Unbound PLC

Shoe retailer Hotter has taken another stride forward in its turnaround strategy after revealing it will record a pre-tax profit for the financial year which has just ended.

Hotter had been through a difficult period and was one of many retailers that underwent a CVA in 2020, as Covid-19 lockdowns magnified the long-term challenges of the high street.

However this helped to accelerate a digital transformation at the West Lancashire-based business, which forms part of a more ambitious strategy.

Hotter is now part of Unbound Group, which listed on the Alternative Investment Market last month.

Unbound aims to become an online multi-brand retail platform by building on Hotter’s strengths and its customer database of 4.6m people.

It is developing its curated platform to offer a broader range of own-brand and third-party services for its core target 55+ demographic. It is currently in discussion with a number of future partners with a target launch in summer 2022.

Unbound chief executive Ian Watson said: “I am delighted that the progress we have made in resetting Hotter continues to be translated into improved financial performance and momentum.”

Hotter Shoes chief executive Ian Watson


Revenues for the year to January 30 were “significantly ahead” of last year, up 16% to £51.9m, as it achieved double-digit revenue growth in both its digital and traditional retail channels.

It expects pre-tax profits, before exceptional items, to be at least £0.2m, compared with a loss of £6.6m in the previous year.

The development of Hotter’s own digital partnership strategy continues to accelerate and today it has revealed a partnership with M&S to sell Hotter products on the Brands at M&S platform.

This follows agreements with other retailers including John Lewis, Next and The Very Group to sell Hotter products online.

The agreement with M&S will start with 32 products and increase to 75 being available directly via M&S.com.

Watson added: “The partnership with M&S is further testimony to Hotter’s attractiveness to other best in class retail platforms. The development of the Unbound Group platform is also gathering pace, we have strengthened the management team and we are currently engaged in positive discussions with a number of potential partners.”

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