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Average of £7,000 for each employee

Schuh staff enjoy big payouts in profit bonus

SchuhFootwear firm schuh is offering a £25m profit-related bonus to its 3,500 employees, providing each with an average £7,000 payout.

The Livingston-based company unveiled annual profits of 11.5m and said the exact amount each employee receives under a 2011 agreement with owner Genesco will depend on salary and length of service. A full-time store manager with a £34,000 salary and 10 years’ service will receive £14,000.

Tenessee-based Genesco bought the company for £125m when it had 111 shops around the UK.

Colin Temple, chief executive of schuh, said: “Despite real challenges for all high street retailers, schuh is going from strength to strength.

“The success of our business is based on the hard work and dedication of our people and there is no better way to thank them than to let them know today that we are sharing £25m throughout the business.”

The company announced annual pre-tax profits today of £11.5m (2014: £12.1m) and opened 12 stores this year; with sales up by 7.6% to £247.5m (2014: £230m).

Mr Temple said he was looking to expand the chain into Europe and has identified potential locations in Germany, where is already has one outlet, and the Netherlands.

He said Genesco’s ownership of the company had enabled it to move away from a slow growth debt-driven model.

“In the first year after selling to Genesco we hoped to open four stores. In fact we opened 17,” he said.

He felt the UK was now becoming “overshopped” largely because of the impact of the internet. A retailer that once needed 500 to 600 stores to achieve national coverage now required about 200.

 

 

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