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By
Reuters
Published
Mar 8, 2010
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Payless to foray into beauty market in September

By
Reuters
Published
Mar 8, 2010

March 8 (Reuters) - Payless ShoeSource, known for its affordable footwear, handbags and other accessories, will enter the beauty and body products category this September, the unit of Collective Brands Inc (PSS.N) said on Monday 8 March.



Payless said it will launch the new line through an alliance with The Maesa Group (ALMAE.PA), a France-based company that is engaged in manufacturing and sale of perfumes and cosmetic products.

Payless, which termed the alliance a "multi-year arrangement," however did not disclose additional terms of the deal.

"Our shoppers have responded very positively to our initiatives to go beyond footwear and democratize fashion and design in accessories as well, and this is one step further to bring consumers beauty products," LuAnn Via, chief executive officer of Payless, said in a statement.

The new beauty merchandise, to be sold under brands names "Zoe & Zac" and "Unforgettable Moments", will be available for as low as $2.99 an item, the company said.

The company, which also sells jewelry, belts, sunglasses and hats apart from shoes, said the new products will be available exclusively in about 1500 Payless stores and expects to expand into additional stores later.

Maesa has designed and manufactured beauty products for companies like Urban Outfitters (URBN.O), Forever21 and Ed Hardy in the past.

Shares of Collective Brands were up slightly at $24.29 Monday 8 March on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Bijoy Koyitty) (([email protected] ; within U.S. +1 646223 8780; Outside U.S. +91 804135 5800; Reuters messaging: [email protected]))

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