Company Announces Agreement with M.H. Alshaya, Leading Retail Franchisee in
Region, Marking the First Time the Retailer Will Franchise its Stores
KUWAIT CITY, and TOPEKA, Kan., Sept. 3 /PRNewswire-FirstCall/ --
Collective Brands Inc. and its Payless ShoeSource unit announced today its
plans for international expansion into the Middle East and that it has
signed an agreement with M.H. Alshaya, the most influential retail
franchisee in the region, as its franchisee for the new market expansion
initiative.
The specialty footwear retailer is on a mission to democratize fashion
and design in footwear and accessories to the World The two companies said
they expect to start opening new Payless stores in 2009 in the region
including in the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain,
Qatar, Egypt, Jordan and Lebanon. This is a multi-year transaction.
Additional terms were not disclosed.
"The people of the Middle East are young, vibrant and love to shop --
frequenting malls and other shopping venues is a significant leisure
activity, with customer visits as often as three times a week. Consumers in
the Middle East want the latest fashions and women, in particular, enjoy
expressing themselves through shoes and accessories," said Matthew Rubel,
chief executive officer and chairman of Collective Brands, Inc. "We see a
strong fit with the shoppers of this region and the Payless brand promise.
We are thrilled to have such a tremendous franchisee in Alshaya, with its
significant retail expertise, infrastructure and deep knowledge of the
region. We look forward to bringing shoppers great style, quality and brand
names -- all at a great price."
Payless and Alshaya said they believe the Middle East could, in the
long term, support more than 200 stores.
"We are very excited to introduce Payless to the Middle Eastern market,
and we believe the Payless name and all it represents including great
brands, a fun inspiring shopping experience, the latest affordable fashions
and high quality will do well here -- just as it has in other regions of
the world," said Mohammed Alshaya, executive chairman of M.H. Alshaya
Company. "People in the Middle East are going to be overwhelmed by Payless
and what it has to offer."
This newest venture follows on the heels of Payless' successful launch
into Colombia, South America, in early August, with four new stores open in
Bogota and more than 35 additional stores yet to come in Colombia within
the next 18 months.
Payless and its more than 4,500-store chain has an expanding
international presence today with more than 600 stores in 13 countries and
territories including Canada and in Central America, the Caribbean, and
South America. Stores in Central America, South America, Trinidad and the
Dominican Republic are operated through joint ventures. Stores in Canada,
Puerto Rico, the U.S. Virgin Islands, Guam and Saipan, are operated through
wholly owned subsidiaries.
The Middle East market initiative marks a first for the retailer in
franchising its stores. The company believes that the franchise model will
enable it to most effectively reach more international markets with its
unique vision. As well, this strategic move is a significant step in
expanding Payless' diversified real estate strategy that includes a
well-balanced mix of mall-based stores with free standing stores and those
located in lifestyle and local shopping centers.
About Payless ShoeSource
Payless ShoeSource, Inc., a unit of Collective Brands, Inc., is the
largest specialty family footwear retailer in the Western Hemisphere and is
dedicated to democratizing fashion and design in footwear and accessories
and inspiring fun, fashion possibilities for the family at a great value.
As of the end of first quarter 2008, the company operated more than 4,500
stores. In addition, customers can buy shoes over the Internet through
Payless.com(R) at http://www.payless.com.
About Collective Brands, Inc.
Collective Brands, Inc. (NYSE: PSS), headquartered in Topeka, Kan., is
a leader in bringing compelling lifestyle, fashion and performance brands
for footwear and related accessories to consumers worldwide. The company
operates three strategic units covering a powerful brand portfolio, as well
as multiple price points and selling channels including retail, wholesale,
ecommerce and licensing. Collective Brands, Inc. includes Payless
ShoeSource, also headquartered in Topeka, focused on democratizing fashion
and design in footwear and accessories through its more than 4,500-store
retail chain, with its brands American Eagle(TM), Airwalk(R), Dexter(R),
Champion(R) and designer labels Abaete for Payless(TM), Lela Rose for
Payless(TM) and alice + olivia for Payless(TM), Patricia Field for
Payless(TM), among others; Stride Rite, based in Lexington, Mass., focused
on lifestyle and athletic branded footwear and high-quality children's
footwear sold primarily through wholesaling, with its brands including
Stride Rite(R), Keds(R), Sperry Top-Sider(R), Robeez(R), and Saucony(R),
among others; and Collective Licensing International, Englewood, Colo., the
brand development, management and global licensing unit, with such youth
lifestyle brands as Airwalk(R), Vision Street Wear(R), Lamar(R), Sims(R),
LTD(R), genetic(R), Dukes(TM), Rage(R), Ultra-Wheels(R), and Skate
Attack(R). Information about, and links for shopping on, each of the
Collective Brand's units can be found at http://www.collectivebrands.com.
About M.H. Alshaya Co.
M.H. Alshaya Co. is a leading international franchise operator for over
40 of the world's most recognized retail brands, including Starbucks, H&M,
The Body Shop, Foot Locker, Mothercare, Debenhams, River Island and Boots.
The company operates over 1,400 stores across six divisions: Fashion &
Footwear, Health & Beauty, Food, Casual Dining, Optics and Pharmaceuticals.
M.H. Alshaya Co. stores can currently be found in 16 markets across the
Middle East, North Africa, Turkey, Cyprus, Russia, Poland and Egypt. More
recently, the company launched operations in Slovakia, Czech Republic and
Hungary. It employs more than 14,000 people from over 35 nationalities.
The company has established itself as the industry leader across these
territories through a combination of local market understanding and a
comprehensive commitment to customer service. Growth in each of its
operating divisions and brands is supported by continuous investment in
talent and infrastructure. It applies best practices in retail operations,
merchandising, marketing, information technology, logistics, real estate,
human resources and financial controls.
M.H. Alshaya Co. is the retail business of the Alshaya Group, which was
founded in Kuwait in 1890 and today represents one of the most dynamic
companies in the Middle East. In addition to its retail operations, the
Alshaya Group is active in a number of other sectors including real estate,
automotive, hotels, trading and investments.
Learn more about the company at http://www.alshaya.com.
SOURCE Collective Brands, Inc.
 back to top
Related links:
http://www.payless.com
http://www.alshaya.com
CONTACT:
Media, USA, Mardi Larson, +1-612-928-0202, or
Financial, James Grant, +1-785-559-5321, both of Payless; or
Dubai, Lisa George, l.george@asdaa.com, or Jonathan Tudor,
j.tudor@asdaa.com, ASDA'A Public Relations, both for Collective
Brands, Inc., 009714 3344550
|
