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Growth Strategies Case Study

Case Title:

Payless worn down at the Heel: Makeover strategies in 2005

Publication Year : 2005

Authors: Arpita Siddhanta, Bharathi S Gopal

Industry: Home Appliances and Personal Care Products


Case Code: GRS0107B

Teaching Note: Not Available

Structured Assignment: Not Available

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Payless ShoeSource, Inc. (Payless) celebrated its golden anniversary in 2006. Started in 1956 with a single store in Topeka, Kansas, the company grew over the period into a substantial footwear retailer. In 2005, with more than 4,600 stores, Payless ShoeSource was the largest specialty family footwear retailer in the entire Western Hemisphere.

Payless ShoeSource was founded by two brothers with a strategy of selling low-cost, high-quality family footwear. More than four decades later, the concept continued. However, it was felt by the customers that the company did not showcase its new products in its stores, and the stores were found very pale and shabby. Payless also continued to use a ‘1980s-era bubble-lettered logo’ even in the 21st century. But, since the late 1990s, the shoppers were becoming more judicious in their apparel purchases, buying several pairs of shoes to freshen up their wardrobes rather than replacing it. The big shoe chains such as Famous Footwear and Shoe Carnival were also changing themselves according to the market need. And to compete and retain its position in this changing market, in 2005, with a new CEO, Matthew E. Rubel, Payless took up several new strategies.

Pedagogical Objectives:

  • To emphasize the importance of innovation in retailing stores
  • To discuss how design in products serve to achieve success in the retail market.

Keywords : Payless; Footwear Company; Kansas; Mathew E. Rubel; Western Hemisphere; Makeover strategy; Bargain Shopper; Bubble-lettered logo; Growth Strategies Case Study; Self-selection format Athletic shoes; Style in Shoe; Parade Stores; Bundles/Tootsies; Dyelights; Payless Kids

Contents : 
Payless ShoeSource
Payless In The New Era
Payless’ Makeover Strategies in 2005
Footwear and Accessories Collection from Payless
In-Store Experience
The Future Trek
Payless ShoeSource ® Stores In USA
Payless ShoeSource’s Products in the New Era

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