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Published
Oct 21, 2010
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Payless Shoesource expands to new international markets

Published
Oct 21, 2010

Collective Brands, Inc. (NYSE: PSS) announced that its Payless ShoeSource unit has signed two new franchise deals to bring the Payless retail chain to new international markets beginning next year in Mexico, Indonesia, Malaysia and Singapore.

Payless

"We have seen a strong global appetite for our brands and today's announcement of two new franchise partnerships to bring Payless to four new countries next year, including Indonesia, our largest franchise market to date, helps us expand our global footprint to better meet growing international demand," said Matt Rubel, chairman, chief executive officer and president of Collective Brands, Inc. "The franchise model for Payless is proving to be a strong strategy for us as it accelerates our ability to place stores in new countries and with minimal capital investment”.

Payless Stores in Mexico

Payless ShoeSource has signed a multi-year franchise deal with Grupo Axo, a new strategic partner headquartered in Mexico City with more than 15 years of experience in the Mexican market, to bring the Payless retail chain to Mexico beginning late next year.
The two companies said they expect to open 41 stores in the next three years and that they believe the Mexican market can support more than 300 stores in the long term, with a strong potential to nearly double Payless' presence in Latin America, one of its fastest growing international markets. Additional terms were not disclosed.

"Mexico has a strong and growing economy with more than 100 million people who are interested in fashion and the latest trends, but want it at a great value," said LuAnn Via, CEO of Payless. "That's what Payless is all about. We democratize the latest fashion, design and ideas in footwear and accessory fashion for all to enjoy."

Grupo Axo employs more than 1,100 associates and operates nearly 100 free-standing and mall stores and over 1,500 shop-in-shops and corners within major department stores. The company represents Benetton, Brooks Brothers, Brunelo Cucinelli, Coach, Emporio Armani, Etro, Guess, Marc Jacobs, Rapsodia, Thomas Pink and Tommy Hilfiger.

With strong determination, Andrés Gomez, also co-president of Grupo Axo, added, "This is an important step within our global strategy, which consists of representing, operating and positioning internationally successful brands in our country. Collective Brands also owns the iconic brand, Keds, which has its sneaker product manufactured here in Leon. With this agreement, we're also promoting local jobs in store sales, construction and local store fixture manufacturing, which will help support the Mexican economy."

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