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Dubai: Collective Brands Inc. and its Payless ShoeSource unit announced on Wednesday its plans for international expansion into the Middle East and that it has signed an agreement with M.H. Alshaya Co, 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 democratise 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 Saudi Arabia, Kuwait, UAE, Bahrain, Qatar, Oman, 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 fashion and women, in particular, enjoy expressing themselves through shoes and accessories," said Matthew Rubel, chief executive officer and chairman of Collective Brands, Inc.
Payless and Alshaya said they believe the Middle East could, in the long term, support more than 200 stores.
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.
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