Payless Announces Strategic Initiatives To Further Transformation

• Actions focus on prioritizing Payless' core customer, accelerating e-commerce presence, and increasing domestic and international growth
• New leadership team dedicated to driving change and positioning Payless for success

Topeka, KS /PRNewswire/ - Payless ShoeSource ("Payless" or "the Company") today outlined several key initiatives as part of the Company's ongoing transformation.

These actions will increase efficiencies across operations and allow Payless to reprioritize the business to focus on the customer, accelerate and expand its e-commerce business, and invest in future growth – including expanding the Company's domestic and international footprint.

As part of an initiative to redesign its organizational structure and better align resources, the Company is streamlining its corporate headquarters. This will enable Payless to modernize its approach to serving its customer in a continuously changing retail environment.

Martin R. Wade, III, Interim Chief Executive Officer and Chairman of Payless, said, "We are one of the few retailers that has successfully emerged from bankruptcy in what continues to be a challenging year for the industry. The in-court restructuring moved at an accelerated pace as a result of Payless' agreements with creditors. The Chapter 11 process enabled the company to significantly reduce debt and create a solid foundation for growth. We must challenge ourselves every day to ensure we take advantage of this fresh start."

Wade continued, "In just a few short months, we have made exciting progress to propel the iconic Payless brand forward and return the customer to the center of our business. To better connect with our customers, we are piloting a new pricing strategy and have launched Hispanic marketing in the U.S., helping us reach an important and currently under-served portion of our customer base. We have brought in a new Chief Strategy Officer and identified strong talent within the organization leading to several promotions, including our new Chief Financial Officer. We will continue to drive change and earn our customers' loyalty by providing great, quality styles for the whole family at an exceptional value."

About Payless
Payless ShoeSource is the number one specialty footwear retailer in the U.S. and one of the largest in the world, offering a wide range of shoes and accessory items at affordable prices for every member of the family. The company's mission is simple: Become the Go To, Get More, Pay Less shoe store for our customers.

Payless' seasonal collection includes shoes for almost every need like dress, casual, and athletic styles as well as specialty footwear such as dance shoes, sport cleats, water socks, and slip-resistant footwear. Payless stores feature hard-to-find sizes for women with a significant portion of the seasonal assortment offered in sizes 11, 12, and 13, and wide widths. The children's line also includes a range of styles in wide widths, as well as half-sizes and extended sizes up to youth size 6 (equivalent to women's size 8 and men's size 6). Payless also carries an array of seasonal accessories such as socks, handbags, scarves, hats, jewelry, and hair items to help everyone complete their looks.

Brands are always important to shoppers and Payless has a strong portfolio featuring popular and authentic athletic brand Champion®, American Eagle™ by Payless®, designer label Christian Siriano for Payless, heritage skate brand Airwalk®, KangaROOS®, American classic Dexter®, and the youthful edgy fashion brand, Brash™. The children's collection features one of the broadest and most powerful assortments in the marketplace, including a range of fun character shoes kids love to wear.

Payless serves millions of consumers through its powerful global network of stores in all 50 U.S. states, as well as Puerto Rico, Guam, Saipan, the U.S. Virgin Islands, Canada, Central America, the Caribbean, and South America. The company also has an expanding presence in the Eastern Hemisphere through franchising arrangements. Payless operates an online store and has approximately 3,600 brick-and-mortar stores in more than 40 countries.

Payless was founded in 1956, in Topeka, Kan. on a revolutionary idea – selling quality shoes at affordable prices in a self-select environment. Sixty years later, Payless continues the self-select model combined with leading customer service to provide a fun and engaging shopping experience for its customers.