Wednesday, 28 June 2006 | Senay

Payless ShoeSource Launches New Logo to Support Company Direction to Democratize

Footwear, Accessory Fashion for the Family

The first store to receive the new Payless logo

Bold Move is Strong Evidence of a New & Improved Payless; Major Ongoing Changes at the Nation's Leading Specialty Footwear Retailer

Payless ShoeSource, the nation's leading specialty footwear retailer, announced today that it is launching a new logo specifically designed to support the company's strategic direction to democratize footwear and accessory fashion and inspire fun fashion possibilities for the family.

The new logo, the first redesign of the Payless logo in about 20 years, incorporates key design elements that leverage Payless' rich heritage and communicates a "new and improved" Payless -- a brand that is contemporary, fun, friendly and, above all, stylish.

"Consumer research over the past years has told us that our current logo pigeon holes us and dates us," said Matt Rubel, Chief Executive Officer and President, Payless ShoeSource. "This new logo is designed to amplify the new Payless brand position -- to inspire fun fashion possibilities for the family. We know that great fashion and design doesn't have to cost a lot, and we are making the latest footwear and accessory trends available at a great price for all to enjoy.

"Our new direction is now focused on delighting the customer -- from how we create our seasonal product collection, how we enhance the shopping experience and engage with our customers to build a strong emotional connection. A critical piece of that is our visual identity and logo -- the visual symbol that represents us."

Logo Design Details
Retaining the use of the color orange, for which Payless is well known, as well as the full name Payless ShoeSource, indicates to consumers that the retailer is not a completely different company, but simply a different Payless -- still dedicated to its core values of delivering great quality and value. The logo includes an icon, which features a stylized P in a circle treatment to suggest dynamic movement and change, as well as a new fashion-oriented font highlighting the word Payless.

The new Payless logo was created by brand experience design firm Desgrippes Gobe, New York City, selected for its expertise to create visual identity programs to build a strong emotional connection with consumers for a range of brands including AOL, American Express, Miller Brewing Company, IBM and Gap, Inc.

"The new logo and visual identity are designed to signal change for Payless," said Judd Harner, President and Chief Operating Officer of Desgrippes Gobe. "The entire Payless experience has been significantly enriched and the visual identity is now a more accurate and appropriate representation of the brand today. It plays an important role in setting new expectations, building new associations and punctuating a more vibrant and inspiring shopping experience."

To signal the changes underway at Payless, in early 2006, the company initiated a print ad campaign, dubbed the "Look Again" campaign featuring the tagline "Look Again. Payless." The print ads appeared in premier fashion publications including Vogue, Elle, Glamour, Lucky, InStyle, Essence, and Latina. In mid summer TV ads, as well as the "Look Again" print campaign will feature the new logo.

The new logo first appeared to consumers on the Payless shopping bags earlier this month. Throughout the summer, Payless will use the new logo in all facets of marketing and communications including TV and print advertising, in stores, and online at Payless.com. All new stores opening in '06 will feature the new logo on store fronts; current stores will receive new exterior signage in a phased approach.

Additionally, to help spread the news on the new and improved Payless, July 6-10 or while supplies last, the retailer will run a "peel and win" game at participating stores in the U.S. and Canada. The game card features the old logo, which when peeled off reveals the new logo, along with an instant prize or discount offer. Prizes include free shoes for a year and Payless gift cards. July 6-26, customers 13 years and older can also enter the online sweepstakes at lookagainpayless.com to win the $10,000 grand prize.

Recent changes supporting the company's new focus to democratize footwear fashion and design for the family include the continuous enhanced fashion and quality in the Payless seasonal collection; the introduction of Abaete for Payless, the first Designer Collection for Payless, which features original footwear designs by a fashion designer Laura Poretzky; and, in support of the Payless "House of Brands" strategy, an alliance with American Ballet Theatre to launch a co-branded line of dance shoes and select accessories and the acquisition of American Eagle™ brand, which Payless will launch next year on a youth-oriented collection. Payless has been building its branded offering and currently features exclusive styles featuring Airwalk, Champion, Spalding and Shaquille O'Neal-endorsed Dunkman™ and Dunkman Game Shoe brands. Payless expects to launch news soon related to its store design, as well as its athletic offering.

About Payless ShoeSource, Inc.
Payless ShoeSource, Inc., the largest specialty family footwear retailer in the Western Hemisphere, is dedicated to democratizing fashion and design in footwear and accessories to inspire fun fashion possibilities for the family. As of the end of first quarter 2006, the Company operated a total of 4,602 stores. In addition, customers can buy shoes over the Internet through Payless.com at http://www.payless.com