· In 2013, Payless had $2.4 billion in annual sales. We also have the #1 unit market share in the...

OUR GLOBAL MISSIONTo become the first choice for style and value in footwear

and accessories for our target customer.

For more than 50 years, Payless has provided incredible value for on-trend

footwear and accessories. Today, we operate more than 4,400 stores in more than

35 countries around the world. Our position is simple: to be the “go-to” shoe store

that budget-conscious women can count on to be there for them and their family,

helping them look good every step of the way. We strive to offer the latest styles

that allow every woman and family to look fabulous…without spending a fortune.

From the early vision that our founders had for our brand to how we’ve evolved

into the company we are today, get ready to discover why everybody loves

to Payless!

Payless began during a time of opportunity and growth.

Two World War II veterans and business-savvy

cousins, Louis and Shaol Pozez, had a shared vision of

offering affordable footwear in an easy-to-shop, self-

service store environment. Once their vision became a

reality, they discovered they could be the top choice for

customers who could not afford this type of footwear

other wise. Today, Payless is one of the largest

footwear retailers in the world. Our stores serve the

entire family, including women, men, kids and teens,

with shoes for every occasion. Our formula for success

is a powerful combination of trend-right styles at value

prices, wrapped up in a convenient, engaging shopping

Experience.

From young professionals to busy mothers, we’ve

learned throughout our journey that “style savvy”

customers love fashion, which is why we offer on-

trend, affordable shoes and accessories that suit any

style. The brands we offer also drive our desire to

satisfy our customers.

We offer a variety of family-

friendly brands at every price

point, each with the same goal:

to build an emotional connection

with our customer. Our brands

add an element of exclusivity to

our products, as well as validate

our position as an on trend

footwear company. In addition,

our strategic use of brands has

created both successes and

growth opportunities for our

company.

At Payless, we operate a range of successful

store formats, each designed to function in

high-profile shopping malls and prime retail

locations.

Our store sizes include:

• Flagship stores: 3,500 sf / 325 sq.m.

• Average size stores: 2,500 sf / 232 sq.m.

• Minimum size stores:1,800 sf / 167 sq. m.)

We strive to create an unforgettable shopping

experience through:

• Our easy-to-shop “Hot Zone” format, which

showcases key looks and trends at the

front of the store

• Our unique self-selection layout, which

allows customers to conveniently shop and

find shoes in their size

• Our utilization of end panels, Visual Impact

Area walls and other in-store fixtures to

communicate the freshness of our brand

• Our wide selection of fashionable footwear

and accessories for every style

In addition to creating a satisfying shopping

experience, we also employ passionate, specially

trained sales associates that are available to

provide the best customer service. We train our

store associates using a multi-step selling process

known as “SMILES”, which drives key behaviors

that lead to conversion and customer satisfaction.

These associate behaviors include explaining

the promotion, measuring kids’ feet, offering

assistance in shopping aisles, suggesting shoes

and accessories and checking stock in other stores.

The SMILES initiative helps drive conversion and

increase same-store sales by:

• Creating hourly goals and real-time reporting for

by-stores sales metrics

• Interactions with customers which are tailored to

their specific needs

• Streamlined operations, which allow for more time

with customers

• Emphasis on managing and coaching sale

associates

Along with using selling steps in the

SMILES process to assist customers,

our sales associates also provide

a complimentary foot measuring service

just for kids. We offer this special service

in every store as a way to accommodate

children and their growing feet. Some

benefits of measuring kids’ feet include:

• Proper size and fit

• Easy on/off

• Wiggle room for toes

• Development of healthy, happy feet

Because children are always growing,

we recommend measuring kids’ feet

every 2-3 months so their feet stay in top

shape, every step of the way.

As one of the largest footwear retailers in the world,

Payless is a brand that budget conscious consumers

can call their best friend. We’re down-to-earth,

trustworthy, friendly, confident, optimistic, supportive,

caring, lighthearted and empathetic. And, we’re one

of the few shoe stores that can provide all of the

following benefits for our customers:

OUR PRODUCT BENEFITS

• Offer a breadth of key styles and merchandise

assortment for each season

• Tailor assortments for every customer and

climate zone, as well as for special programs

• Leverage economies of scale and quality

through our wholesale process

OUR SERVICE BENEFITS

• Ensure our customers receive the right size by

measuring kids’ feet, as well as offering half size

and wide width styles

• Offer our Happiness Guarantee, a no-questions-

asked money-back guarantee if customers are

unsatisfied with their purchase (where allowed

by law)

OUR EMOTIONAL BENEFITS

• Provide the ultimate customer service by treating

shoppers like we work for them

• Understand our customers and their lifestyle

needs

• Suggest products to ensure that customers are

satisfied and successful

Along with these benefits, we follow a pricing strategy

that allows us to serve our customers and their

needs. Our strategy:

• Communicates the value we provide and

demonstrates the intrinsic value we offer

• Is consistent and easy to understand

• Uses promotional pricing to drive purchase

behavior and a sense of urgency to buy now

• Satisfies our financial need to sell large quantities

fast and at acceptable margins

• Consistently delivers high-quality products, which

is reinforced by our Happiness Guarantee

• Clearly communicates product features and

quality

By following this strategy and understanding our

customer, we are able to offer a large assortment of

products that serve the entire family, including

women, men, kids and teens.

Payless ShoeSource and our associates have a strong tradition

of giving back to the communities where we work and live, and

we give in a variety of ways. The Payless Foundation supports

non-profit programs each year that help enrich the quality of life

in our communities and supports families in need. The

foundation offers grants and sponsorships to non-profit partners

in our home community, as well as donations to Payless store

communities impacted by crisis or disaster through our Payless

Store Community Disaster Relief Fund.

Payless has also donated more than $1 million in shoes each

year for the last six years to children in need through Payless

Gives Shoes 4 Kids, our product donation program, which

reaches children throughout the U.S., Canada, Puerto Rico and

Latin America. And, we have a team of amazing associates who

live our guiding principles of doing what’s right and inspiring

possibilities through their outstanding support of our annual

Choose to Give associate giving campaign, which raises more

than $1 million every year for nearly 100 local and national

nonprofit organizations.

In 2013, Payless had $2.4 billion in annual sales. We also have

the #1 unit market share in the United States. Internationally,

Payless offers a variety of business models, including wholly

owned stores, franchise stores, joint venture stores and stores

within a store.

We spend more than $100 million annually on marketing.

More than five billion impressions are delivered each year

through:

• Television • Direct Mail

• Fashion magazines • In-store

• Online • Newspaper inserts

• Social/digital networks • Radio

• In-house creative team • Weekly magazines

• Customized marketing • Promotional development

by region around key selling periods

• Public Relations • Direct Mail

Online: Social Media Direct Mail

In-storeEmail

Broadcast: Television

Fashion Magazines Mobile

Payless connects with consumers who desire on-trend product at value

prices

The Payless self-selection rack system is the most efficient model for

selling footwear

The Payless service and operational model drives transactions while

delivering high customer satisfaction

Tailoring a portion of the merchandise specifically for the market

Marketing with understanding of holidays, pay period cycles, and spending

patterns and local tastes/preferences that impact conversion

Managing and understanding the complexity of growing a large, established

brand in the often fragmented and relatively undeveloped footwear market

which exists in many countries

• Commitment to invest in, and develop a network of

Payless ShoeSource branded retail stores

• Management and merchandising in accordance with

the Payless brand standards to operate the network

of stores

• Strong commercial knowledge and retail experience

operating within the local market

• Recruitment and retention of high-quality staff

• Purchase of product from the Payless assortment

and logistics from the country of export

• Localized marketing materials and printing

• Continued compliance with the terms of the contract

agreement, operational manuals and the Payless

ShoeSource brand standards

• Point of sale (POS), inventory management and

other IT systems

• Capital investment to establish and sustain the

business

• Retail operations processes, training and continuing

guidance

• Trend direction and product sourcing

• U.S. marketing materials

• Store design standards and training

• Use of Payless trademarks

• Regular audits, training and oversight of brand standards

• Support from a dedicated team in the U.S.

When working with a potential partner, we look for the

following criteria:

• A proven retailer with operations and merchandise

experience

• The financial capacity to develop a multi-store business

that delivers sustainable growth throughout the territory

• An established company with a thorough understanding

of the fashion and retail markets within which the partner

will operate

• A well-respected and professional business with a strong

record of corporate responsibility

• Strong business acumen and excellent attention to detail

• A willingness and ability to emulate the Payless

ShoeSource brand, culture and standards

We hope you’ll become a member of the Payless family!

If you’re interested in becoming a partner or have any questions,

please contact Prabs Moodley or Andrew Lee

Prabs Moodley

[email protected]

Andrew Lee

[email protected]

3231 Southeast Sixth Avenue

Topeka, KS 66607-2207

U.S.A.

We look forward to hearing from you soon!

mailto:[email protected]

mailto:[email protected]

· In 2013, Payless had $2.4 billion in annual sales. We also have the #1 unit market share in the...

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