Payless ShoeSource Announces Three New Payless Fashion Lab(TM) Stores in Manhattan's Hip Shopping Districts

TOPEKA, Kan., May 3 /PRNewswire/ -- Payless ShoeSource, the nation's leading specialty footwear retailer, announced today that it is opening three new Payless stores featuring the retailer's flagship Payless Fashion Lab(TM) store format in hip Manhattan shopping districts of Soho at 513 Broadway, Lexington and 59th at 716 Lexington, and the high-traffic area of 14th Street near Union Square at 40 West 14th Street.

The first store is opening today in Soho, with the remaining stores due to open in the summer. These new store locations are important for their high-volume foot traffic, cache, and shopping clientele, which is well suited for Payless Fashion Lab format -- the new flagship store design launched by the retailer last July.

Payless Fashion Lab stores offer the same great Payless products, with a broader fashion assortment like Payless' Designer Collections and an increased selection of handbags and accessories -- all at traditional Payless value prices. The stores feature a self-select shopping environment and are intended to make it easier for shoppers to have fun and experiment with fashion by letting them more quickly find the styles they love. Product is displayed by seasonal trend stories atop self-select custom fixtures that house shoe box inventory below. The stores are brightly lit, open and have ample seating for trying on shoes.

"These shopping districts are new for us, but with our new Payless Fashion Lab stores, we feel right at home," said Matt Rubel, chief executive officer and president, Payless ShoeSource. "We are dedicated to democratizing fashion in footwear and accessories to deliver the latest on-trend styles at a great price, and we look forward to serving the shoppers in these new areas with our fun, inspiring new stores and our enhanced seasonal collections."

Payless said that the new Payless Fashion Lab format is helping the retailer secure locations in high-fashion malls and other premier shopping areas such as New York's Fifth Ave.; San Francisco Centre near Union Square in San Francisco; Valley Fair Mall, Santa Clara, Calif.; Houston Galleria, Houston; and Dallas Galleria, Dallas, among others. The Soho store is the second Payless Fashion Lab store in New York City and the 13th Payless Fashion Lab store now opened nationwide. There are 15 of the flagship stores planned nationwide in fiscal 2007. The Payless Fashion Lab and Hot Zone formats began rolling out last year and continue nationwide as part of Payless' strategic initiative to refresh its store chain.

Payless ShoeSource, Inc., the largest specialty family footwear retailer in the Western Hemisphere, 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 the fourth quarter 2006, the company operated a total of 4,572 stores. In addition to its stores, customers can buy shoes over the Internet at http://www.payless.com/.