Payless Shoes Steps Into Fashion

Shoe-hungry shoppers have taken a closer look at Payless ShoeSouce (PSS) during the recession, hoping to find high style at low prices. CEO LuAnn Via isn't letting that opportunity go to waste, jumping on new trends in footwear while also going into new lines of business. It is all part of what the company sees as its larger mission: the "democratization of fashion."

Payless is adding body and beauty care products to help position it a source for synchronized style, not just shoes. After all, for some women, fashion flows from the feet up, and cosmetics and the like are just one more shoe accessory.
Payless has struck a deal with the Maesa Group, to create a collection of new cosmetic and body care products that will launch this fall at 1,500 ShoeSource locations, about a third of the total. The product line launches under two brand names and is slated to expand throughout the Payless chain.

The beauty move follows the addition in 2009 of seasonal accessory collections that include jewelry, belts, sunglasses, hats, scarves, gloves and handbags.
With all that, Payless hasn't forgotten that it has to keep up with trends in footwear. The company also is launching Champion Fitness, a toning shoe that will cost from $25 to $40.

BNET spoke with about CEO Via about the strategy behind the Payless initiatives. Here are some edited excerpts.

BNET: Payless Shoe Source has expanded its seasonal accessories offerings. Is this the beginning of a basic shift in strategy?

Via: Our intent is to help shoppers complete their look. We all know shoes are the 'outfit maker,' and that additional accessories like handbags, jewelry, belts, hats and scarves complete a look. Our beauty and body-care products are an extension of this same idea. We view these items as fun fashion accessories, offering the latest hues, shimmers, scents to help women affordably complete their personal sense of style.

BNET: Was the launch of the Champion toning shoe line a signal that Payless intends to be more trend-conscious? Or does the company see fitness as an opportunity?

Via: Payless is dedicated to democratizing fashion. That means making the latest products affordable and accessible. Toning shoes, which feature technology that creates instability when walking and engages the legs and buttock muscles, is a new category. We are making this leading technology available to shopper beginning at $25.

BNET: What are your marketing plans for Champion?

Via: Champion Fitness will be predominantly featured in our stores this month and we are promoting the new line through PR and in our digital and other traditional media forums as well.

BNET: What beauty categories will consumer see initially and how will they be merchandised and positioned?

Via: There will be up to about 60 SKUs covering two brands: Zoe and Zac and Unforgettable Moments with such items as lotions, creams, butters and shower gels for body, hands and feet, fragrances and mists, color for eyes and lips, as well as nail polishes, among others. Like all Payless products, the new beauty merchandise will be available at a great price, as low as $2.99 an item. A new store fixture will be designed to house all the items and be placed up front.

BNET: How has the weak economy affected prospects for Payless?

Via: During difficult economic times, shoppers will take a second look, and we are pleased by that. [Payless' parent company, Collective Brands, reported net earnings of $82.7 million in 2009, compared to a loss of $68.7 million in 2008.] We have gained market share in the recession. We have been on a repositioning path since about 2005, and these efforts have been successful. Brand firm Landor & Associates named Payless to the 2009 TOP Break Away Brand list, which also includes Apple, Google and Trader Joe's.