INSPIRING. FUN. FASHION. PAYLESS SHOESOURCE, INC.
Style is no longer measured by a price tag or designer label. Now fashion has forever stepped off the runway and into the streets. More and more, it’s coming from Payless, with fun fashion footwear and accessories at surprisingly affordable prices. Style is everywhere, and so are we. In every state and Puerto Rico plus 500 international locations — from Canada to Central America and the Caribbean, South America, Guam and Japan. We’re the largest family footwear retailer in the Western Hemisphere, with 2005 sales of nearly $2.7 billion.That’s 180 million pairs of shoes, and 600 million customer visits driving traffic again and again to 4600 stores. That’s a lot of zeroes to say we’re a destination that’s going strong and growing stronger.
pattern_22a-b PAYLESS SHOESOURCE INC. GROWTH CHART 1000
# of stores
1975
2000
3000
4000
490
1990 2005
2696 4605
NYSE Trading Symbol : PSS
OUR VISION TO DEMOCRATIZE FASHION AND DESIGN IN FOOTWEAR AND ACCESSORIES — AND BE HER FIRST CHOICE FOR STYLE WITH VALUE.
WHO’S WHO. Who’s visiting us? It may be easier to say who isn’t, because our reach is incredibly broad. As the market leader of shoes sold in households earning $75,000 or more, customers are giving more share of their wallet to us than any other footwear retailer. As for the Payless customer — she’s stylish and wants as much fashion as she can get for her money, no matter how much she has to spend. She often has children and a husband she shops for. And whether she’s single, married, a mom or just starting out, she loves to shop. That’s exactly why she comes to Payless. We share her passion for shoes, bags and accessories, and have the styles she wants right now. All at a value that lets her experiment and express herself.
PERCENTAGE OF PAYLESS CUSTOMERS BY INCOME U.S. Houshold Income
$100,000 + $75,000 - 99,999
12.8% 10.9%
$50,000 - 74,999
20.7%
$35,000 - 49,999
15.5%
$25,000 - 34,999
14.1%
$15,000 - 24,999
14.3%
< $15,000
11.7% source: NPD - pairs sold
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REINVENTING THE STORE AND MORE. This year, Payless introduced a new store design that elevates the shopping experience and our status as a specialty store destination. The new format invites customers to explore, experiment, fall in love — in short, it makes shopping Payless fun. With clearly defined sections for men, women, kids and athletics, this playful new space is now as conducive to impulse purchases as it is to convenient shopping by size.
HOT ZONE All new Payless stores feature our Hot Zone concept store layout. It’s designed to inspire customers with the of-the-moment trend stories she’s looking for, grouped by style and ready to shop. New display tables and low gondolas open up sight lines and spotlight fashions. While the newest arrivals beckon shoppers as they enter, customers can also easily shop by size throughout the store.
FOR OUR TARGET, THE IN-STORE EXPERIENCE IS:
• More vibrant and engaging • An irresistible invitation — Come! Shop! • Easy to navigate — more trends and shoes on display with easy-to-find sizes • Brand-building — with clean lines and fun, modern graphics SITE SELECTION CRITERIA:
• Major CBDs, Regional Malls, LifeStyle Centers, Power Centers, Regional Shopping Centers • Preferred Anchors: Department Stores, Target, Kohl’s, Wal-Mart • Women’s Apparel co-tenants • Spaces at least 3,000 square feet • At least 30 feet of frontage • In-line locations preferred over outparcels
NEW PLACE, NEW FACE.
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Our stores aren’t the only things being redesigned. As part of the brand’s transformation, we’ve updated the “face” of Payless with a new logo. It is our hope that this sleek, more modern look will increase the bond with current customers while extending our appeal to broader audiences.
PAYLESS. AS SEEN EVERYWHERE. Our focus on must-have-looks is getting noticed. Every month, Payless is on the pages of the world’s most-followed fashion magazines. Now in Lucky, InStyle, Glamour, People, Marie Claire, O, The Oprah Magazine, Latina and Essence, Payless shoes and accessories generate more than 100 million impressions a month in print, online and television media. Reports on the Style Network, the Today Show and CBS News confirm we are on-trend as well as on the air. This year, Payless also premiered at New York’s Fashion Week, with its first-ever designer collection. Designed by NYC-based Laura Poretzky under her label Abaeté, it brings Poretzky’s signature sexy style from the runway to women everywhere. It’s just another way Payless is inspiring all sorts of new possibilities for our consumers.
Print campaign Customer handout
ADVERTISING YOU CAN’T TUNE OUT.
Television campaign
“Favorite Aunt”
Our in-store is fresher, graphics are bolder, and we’re talking to our consumers in an entirely new way. That extends to a compelling new TV campaign that makes the Payless brand more relevant and more aspirational than ever before. Inspired by popular culture and set to music from emerging new bands, these commercials make an emotional connection with her by reflecting her life and her passions. All while showcasing our gotta-have-it styles, in step with select department and specialty stores. “Party to Party”
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An extensive media plan — amounting to more than five billion impressions a year — leverages the power of television, radio, fashion and weekly magazines, plus newspaper inserts to entice customers right through the doors.
SOUTH/EAST DIRECTOR BETSY CLINGAN 785.270.7812 WEST DIRECTOR GREG HULTGREN 785.270.7829 INTERNATIONAL VICE PRESIDENT DARREN HADDOCK 785.270.7850
FOR FURTHER INFORMATION, CONTACT: PAYLESS SHOESOURCE WORLD HEADQUARTERS STORE DEVELOPMENT DEPARTMENT CORPORATE OFFICE TOWNSITE PLAZA 2 120 S.E. 6TH STREET, SUITE 102 TOPEKA, KS 66603 (785) 233-5171 (785) 270-7878 FAX VICE PRESIDENT LEASING: DARREN HADDOCK EXT. 7850 VICE PRESIDENT STORE ASSET MANAGEMENT: RANDALL SWAIN EXT. 7855