US footwear giant enters RP market

MANILA, Philippines - US footwear giant Payless announced it has entered into a franchise agreement with Stores Specialists Inc. (SSI) of the Rustan’s Group to sell its products in the Philippines with the first stores planned to open by the middle of next year.

In a press statement from Topeka, Kansas, Payless ShoeSource said the Philippines will be the next country in its continued international expansion of the Payless retail chain.

SSI has a strong background in developing well-known international brands in the Philippines, and is the leading fashion specialty retailer in the country, managing 72 well-known brands and 340 retail stores.

 “We are thrilled to bring Payless and all it represents to the Philippine market,” said Anthony Huang, SSI executive vice president. “As a retailer and fashion brand, Payless is doing tremendous things for people across the globe with its mission to democratize fashion and design in footwear and accessories for all to enjoy. We believe this brand promise will do well here, as it has in the US and other areas of the world.”

The two companies said they expect to start opening new Payless stores in 2010 and that the Philippines – the 12th largest country by population with over 90 million people, and a family-oriented culture that is attracted to affordable fashion – appears to be a strong fit for the Payless offering and brand promise.

Approximately five stores will open in the Philippines beginning middle of next year, and more stores are scheduled to open in the coming years to ensure that the market is fully served. This is a multi-year transaction; additional terms were not disclosed.

In the past year, Payless has announced franchise arrangements for the company’s global expansion initiative, with six new stores now in the Middle East and stores planned for Russia next year with M.H. Alshaya Co.

“The franchise model is proving to be the most efficient way to reach more international markets with the Payless brand and all it has to offer – great fashion, well-recognized brands and quality all at a great price,” said LuAnn Via, chief executive officer and president of Payless ShoeSource. “Payless brings the know-how in footwear specialty retailing, and our franchise partners like SSI bring its strong infrastructure and experience in the local region. Filipino people love to shop and have a strong appetite for American brands, fashion and footwear and accessories. Together with SSI we are truly excited to bring the Payless brand to the Philippines and to affordably serve the footwear and accessory needs of families in the country.”

Through the franchise arrangement, Payless provides SSI with seasonal product assortments, as well as expertise in retail operations, merchandising, marketing and brand strategy. SSI provides retail location strategy, construction, logistics, and store training and staffing. SSI will utilize Payless’ newest store format, the “Hot Zone” layout, and will purchase Payless products directly from Payless’ seasonal assortment.

Like the Payless stores in the U.S., the stores in the Philippines will feature a wide assortment of shoes and accessories for the family including branded products for women, men and children covering a range of wearing occasions.

Payless ShoeSource Inc., a unit of Collective Brands, Inc., is the largest specialty family footwear retailer in the Western Hemisphere dedicated to democratizing fashion and design in footwear and accessories.