Lisa McCartney
April 28, 2012
“Retailer Relationships”

Professor Zoppi

1) Describe how you selected the retailer and explain your rationale.
The retailer I selected is Payless Shoe Source. The reason I chose this retailer is because they have been in business for a very long time and a very popular place to shop for shoes. It is the largest footwear retailer in the United States. I also worked there about 18 years ago so I have some knowledge of how the company runs and what they do to appeal to customers. This is a place that people love to shop at due to the prices of their shoes and the selection that they have for the whole family. I think this store is great for kids shoes since kids out grow them so quick. Why spend so much money on shoes when they will outgrow them in a couple months. I don’t think there is anyone who does not know what Payless Shoe Source is. They may not have shopped there but they know what the store is by the name. Payless Shoe Source opened in 1956 as Pay-less National. In 1991 they changed their name to Payless Shoe Source, Inc. I think this is a great company to write about because they have been around so long and in that time they really have not changed who they are as a company and what they offer to the customers.

2) Describe how your selected retailer uses social media to build relationships with its customers.
Payless Shoe Source uses many social media to build relationships with its customers from television ads to online ads to the advertisement that they do in the store. They have advanced with going online and being in contact with customers on the web. They are on facebook and twitter where customers can play a game to win a coupon. I don’t think there is anyone that would not like a coupon for when they go shopping for shoes, purses, or socks. Payless Shoe Source has always kept their styles up to do for all age groups. Even in the adult sizes there are styles for the younger ages. They have broadened their merchandise by having not only shoes but to have purses, socks, pantyhose, jewelry, etc. The sales that they have really draws in the customers and their prices are fantastic; which is why they are the largest retailer in the United States. They have contact with their customers when you sign up with your email for coupons and promotions so you don’t miss anything that is going on in the store. They will also send you a coupon for your birthday.

3) Research what this retailer did in the 1990s, pre-social media to build relationships. Compare the 1990s method to the social media method used today. (Is is better off now or how it was before?)
In the 1990s Payless Shoe Source built relationships with its customers with television ads and in the newspaper. I also think word of mouth was a big help as well. I do think that have advantages with what they have available now with the web. That is a huge advantage with advertisement. They are able to reach out to more people and especially with email. That was not available back in the day. I actually want to say that there were no coupons either. I know when I worked there, there were no coupons. The only discount you received was from the sales in the store. I do think they are better off with what they have available to them now. There is much more communication with the customers than in the past. I think that goes for most retailers. There is more ways to reach out to customers than ever before and I feel that will get even better moving forward in the future.

4) Explain how this retailer’s nontraditional forms of retailing evolved over the last 20 years. Suggest a new nontraditional retailing method that this retailer could take advantage of that is not currently using.
Payless Shoes Source has evolved tremendously over the last 20 years. One of the ways they have evolved is with accepting bank cards. That is a big step for them to give confidence to the customers. Another thing they have offered is gift cards. That will also have customers become repeat customers which is what you want so a business stays successful. The loyal customers are the ones that return time after time. Technology has definitely helped Payless Shoe Source keep up with the changes but still have the same look and feel as it did 15 years ago. It is good to have change but also makes customers feel comfortable to go back and everything is how it was with the last visit. Another way they evolved is by opening store in different companies. Making your name known around the world is huge. I think one nontraditional retailing method that Payless Shoe Source could take advantage of is having a store in airports. Different areas have different shoes which would appeal to customers going to that area for the first time. Sometimes you have to be at an airport for a long time depending on your lay over. I went to Vegas last year and we were stuff in the airport for hours and I can tell you that if there had been a Payless in there, I would have been shopping. Woman can spend a lot of time in a shoe store just trying shoes on. I know I can.

References 1) http://www.fundinguniverse.com/company-histories/Payless-ShoeSource-Inc-company-History.html 2) http://jkumor.com/2011/02/02/payless-shoesources-social-media-presence-boosts-rapport/ 3) http://www.paylessaffiliates.com/salesguide.shtml 4) http://www.payless.com/store/home/home.jsp 5) Retail Management – A Strategic Approach