High street footwear retailer Shoe Zone has warned that the Middle East conflict is driving up business costs and dampening shopper confidence, as it reported significantly widened losses. The chain, which operates 259 stores, is currently reducing its physical footprint by shutting shops and cutting its warehouse size. It posted a pre-tax loss of £5.3 million for the six months to 28 March, substantially widening from the £2.3 million loss recorded in the same period last year. Revenues declined by 12 per cent year-on-year to £62.9 million, partly due to operating with 19 fewer stores following a series of closures. Shoe Zone also attributed slower trading to reduced consumer confidence, citing recent Government budget announcements and, more recently, the war in Iran. This was resulting in fewer visitors to shops and less spending on nonessential items, according to the firm.…