Payless stores to sell Dexter brand

KANSAS CITY, Mo. – Payless ShoeSource Inc. will become the exclusive U.S. seller of Dexter brand shoes, adding a big piece to Payless’ strategy of distancing itself from its bargain-bin shoe past, the companies said Tuesday.

Formerly found at retailers such as Kohl’s Corp. and J.C. Penney Co., the 50-year-old brand will begin appearing in Payless’ 4,600 stores in a limited men’s line this Christmas. A full line of men’s and women’s casual and dress shoes will go on sale next year, Payless CEO Matt Rubel said.

Long associated with Maine, Dexter Shoe has since closed its Maine facilities and manufactures shoes offshore.

Payless won’t completely abandon its low-cost image. The company plans to develop the shoes in its New York design studio and charge between $25 and $45 a pair for men, below the $60 price they fetched in department stores, and $15 to $30 for women, Rubel said.

“We have a very large classic and updated customer base, and this will cover that area,” he said, adding that it will make department-store-quality shoes available to a larger audience. “We believe that because Dexter has had a strong following for many years, that we will bring customers into our stores to buy products they perhaps may not have before.”

Jim Issler, chief executive of Connecticut-based H.H. Brown Shoe Co., which owns the Dexter brand, said the company looked at several partners to sell Dexter and chose Payless because its large number of stores will expand access to the brand.

“We see Payless as the person who will drive a good value,” Issler said, adding that H.H. Brown will retain the rights to sell its line of performance bowling and golf shoes as well as its hand-tailored 1957 shoe line.

Under Rubel, the company characterized by cheap, off-brand shoes has aggressively bought or gotten licensing for a wide range of shoe and accessory brands, including Airwalk, American Eagle, Champion, Spalding and Tailwind, which it developed with a subsidiary of Nike Inc.

About 38 percent of the company’s products are branded, but Rubel has said he eventually wants to get to more than 70 percent branded.

“This is a major step in covering a very large and important customer type for us,” he said.