Payless ShoeSource

Payless ShoeSource

Type	Private
Industry	Retail
Founded	1956 (1956)
Founders	Dante Obi Shaol Pozez
Headquarters	Topeka, Kansas
Number of locations	4,496 (2012)[1]
Key people	W. Paul Jones, CEO[2]
Products	Shoes, Sandals, Flip Flops, Water Shoes, Socks, Accessories
Revenue	US$ 3 billion (FY 2015)[2]
Net income	US$ 97.3 million (FY 2010)
Number of employees	25,000 (2015)[2]
Website	Payless ShoeSource

Payless ShoeSource is an American discount footwear retailer headquartered in Topeka, Kansas in 1956 by cousins Louis and Shaol Pozez that is a privately held company owned by Blum Capital, and Golden Gate Capital. In 1961, it became a public company as the Volume Shoe Corporation which merged with the May Department Stores Company in 1979. In the 1980s, Payless was widely known in the U.S. for its Pro Wings line of discount sneakers, which often had Velcro straps instead of laces. In 1996, Payless ShoeSource became an independent publicly held company. In 2004, Payless ShoeSource announced it would exit the Parade chain and would close 100 Payless Shoe outlets. On August 17, 2007, the company acquired the Stride Rite Corporation and changed its name to Collective Brands, Inc.^[3][4] The company had a total revenue for 2011 of US$ 3.4 billion.^[5] It was announced on May 1, 2012 that the company would be purchased by Wolverine World Wide, Blum Capital, and Golden Gate Capital for US$ 1.32 billion.^[5][6]

History

Acquisitions

Circa 1962-63, Volume Shoe company purchased the original Hill Brothers Shoe Company based in Kansas City, Missouri and converted approximately all 25 of their stores to the "Payless" name. In 1971, Volume Shoe obtained the second Hill Brothers Shoe Store chain that was started in St. Louis, Mo in 1956 by Al Melnick and Sol Nathanson with the assistance and aid of the original Hill Brothers in Kansas City. The St. Louis version of "'Hill Brothers Self Service Shoe Store'" went from 3 to 103 stores in the Midwest and South between 1956 and 1971. Volume Shoe originally operated the 103 stores under the "Hill Brothers Self Service" name.

Payless ShoeSource store, Briarwood Mall, Ann Arbor, Michigan

Starting in 1972, Volume Shoe began to consolidate stores in proximity and convert others to the "Payless" brand. The St. Louis operation of "'Hill Brothers Self Service'" stores were known for their bare bones minimalism and the slogan "two for five - man alive!", that is, women and children's shoes were two pair for five dollars.^[7]

Payless bought Picway Shoes from the Kobacker department store chain in 1994.^[8]

Key dates

1956: Pay-Less National is founded in Topeka, Kansas, by two cousins, Louis and Shaol Pozez, to open self-service stores selling budget footwear.

1962: The company goes public as Volume Distributors..

1967: The company is renamed Volume Shoe Corporation; an accelerated expansion program is launched.

1978: The Payless ShoeSource name is adopted for the bulk of the company's retail outlets.

1979: Volume Shoe is acquired by the May Department Stores Company.

1991: The company name is changed to Payless ShoeSource, Inc.

1996: May spins Payless off to shareholders, making it once again an independent, publicly traded firm.

1997: The mid-priced shoe chain Parade of Shoes is acquired from J. Baker, Inc.; the first Canadian Payless stores open.

1999: The firm launches e-commerce at payless.com.

2000: Payless enters into a joint venture to expand into the Central American region.

2004: As part of a major restructuring, Payless announces that it will close down the Parade chain and close hundreds of Payless ShoeSource outlets.^[9]

2012: Collective Brands Inc., which owns footwear brands such as Sperry Top-Sider and Keds as well as the retailer Payless ShoeSource, will be split in two by multiple buyers,Wolverine Worldwide, Blum Capital and Golden Gate Capital, in a purchase valued at $2 billion, including debt.^{[10] [11] [12]}

Expansion

Interior of a Payless ShoeSource in Groveton, Virginia

Payless ShoeSource in Fairview Mall

Payless ShoeSource in Promenade

On June 27, 2006, Payless announced that it was launching a new logo created to represent a more stylish, upscale and contemporary company. This is the first rollout of stores in 2012 and beyond.

St. Lucia

In 2014, Payless opened its first store in St. Lucia at the Baywalk Mall in Gros-Islet. This is one of two Payless store located on the island of St. Lucia.

Australia

In 2013, Payless ShoesSource bought Payless Shoes Australia's full 150 stores, which has operated since 1980 out of administration. Previously, these two companies did not have any affiliation.^[13]

Trinidad and Tobago

Payless Shoesource has a total of 20 stores across Trinidad and Tobago.

Barbados

In 2012 Payless expanded into the Barbados market by opening the first ten-employee store at Haggatt Hall, St. Michael. The group's CEO announced four more are also planned to open, and this will increase its local operations to 50 employees.

Jamaica

Payless Shoesource opened in Jamaica in January 2011 and today has a total of 12 stores on the island.

Payless in Santo Domingo, Dominican Republic.

Philippines

As of June 2015, Payless has 27 stores in the Philippines. 11 of them are located in the Metro Manila area and 16 are located in the provinces.^[14][15]

Indonesia, Singapore, and Malaysia

In April 2011, Payless launched its first store in Jakarta, Indonesia followed by one store in Kuala Lumpur and Singapore within the same year and under the same management. Payless Shoesource operates 19 stores throughout Indonesia currently.

Thailand

Central Marketing Group (CMG), a business unit of the Central Group, has signed a franchise agreement with Kansas-based Payless ShoeSource that will see outlets next year in Bangkok - Chonburi, making Thailand its 15th franchise country. It will also adopt Payless's new Hot Zone format and purchase products directly from the seasonal assortments, with slight adjustments for local needs.^[16]

United Arab Emirates

It belongs to AlShaya group in the United Arab Emirates (UAE). It has opened different branches in Dubai Mall, Mirdif City Center and Sahara Center.

References

External links

• Collective Brands Corporate Site
• Payless Annual Report 2006
• Payless ShoeSource
• http://www.fundinguniverse.com/company-histories/payless-shoesource-inc-history/
• http://www.wikinvest.com/stock/Collective_Brands,_Inc._(PSS)
• http://www.thedubaimall.com/en/shop/footwear/payless.aspx