Struggling shoe retailer Stylo is exploring strategic options for the business amid what it describes as a "challenging" outlook.

The firm, which operates the Barratts and PriceLess chains, said in a trading update yesterday (22 January) that its margins continue to be impacted by the difficult economic environment.

But it said it continues to manage stock levels and costs tightly.

Last month Stylo warned trading was worse than expected in the four weeks to the beginning of December and that it had started sales across all its stores.

In the first half of its financial year, the company posted a loss of GBP9.7m (US$14.6m).