2017 has been a tough year for retail, and the latest chain to fall victim of failing to compete against e-commerce giants like Amazon is Payless ShoeSource. In a statement from Payless CEO Paul Jones, the company officially filed for Chapter 11 bankruptcy on Tuesday, saying that they will initially be closing between 400-500 stores.
Payless has over 4,400 stores in 30 different countries. However, the cheap-shoe model, initially a novel concept that brought them great affluence, is no longer enough to differentiate the Kansas based chain from other internet companies that offer equally if not cheaper shoes.
In a statement to the press, Payless’ CEO said that “[it] was a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify.” The company has also said that they plan to take on “aggressive” changes to their setup in order to confront their e-commerce competitors.
You can click here to find a list of stores that are initially planned to close.
That’s too bad, another retailer bites the dust. I don’t usually shop at Payless but cannot imagine buying shoes on the Internet is more convenient than in person where you can actually try them on without the hassle of having to mail them back if they don’t fit.
Payless’s product line in recent years had declined. I used to find great deals on shoes I Ioved but I haven’t made a purchase there in about 2 years.
I have identified many cost cutting initiatives they could undergo. One is to look at the leases and the structure or layout of the store. Those are the free and the rest cost you. J