Blog: Leonie BarrieOne size fits all?

Leonie Barrie | 24 May 2007

Payless ShoeSource and Stride Rite both stand to gain from yesterday’s announcement that Payless is to buy Stride Rite Corp for about US$800m. The deal will help Payless secure a bigger share of the fast-growing branded and children's footwear sectors, as well as retaining its dominance in the discount retail sector, and will provide Stride Rite with the resources it needs if it is to stand a chance against widespread industry consolidation.

The acquisition is the second in as many months for Payless, which in March revealed plans to buy skate and snowboard licensing company Collective International for approximately $91m. The appeal of that deal – Collective's portfolio includes Airwalk, Lamar, Sims, LTD, Ultra-Wheels and Skate Attack – was that it would take Payless into the brand development, management and licensing business for the first time.

Stride Rite had previously been on the acquisition trail itself, buying firms such as shoe maker Robeez and athletic footwear line Saucony, but now concedes that it needs to join a company with bigger resources if it is to stand a chance against widespread industry consolidation.

Where the new holding company, Collective Brands, is heading remains to be seen. Further acquisitions are more than likely to broaden its exposure in markets like children's and men's non-athletic shoes, but there will also be challenges in trying to become a leader in such a fragmented marketplace.

Payless to buy Stride Rite for $800m


BLOG

Industry welcoming move to renegotiate NAFTA

The US textile industry has welcomed President Donald Trump's decision to renegotiate NAFTA, saying it is in America's national interest to modernise the trade agreement....

BLOG

Cutting edge technology defining apparel industry

Cutting-edge textile processing products including a new technology for dyeing yarns in a more sustainable manner and a digitalised sewing machine set up via a touchscreen or app, were among the most ...

BLOG

Ethiopia apparel and textile industry making massive gains

just-style's editor Leonie Barrie recently visited Ethiopia to see for herself the massive developments taking place to elevate this East African nation into a compelling new garment and textile sourc...

BLOG

Collaboration remains a challenge

Collaboration between retailers, brands and their suppliers is a mission critical element in developing a slicker and more cost-effective supply chain. But in an increasingly complex fashion environme...

just-style homepage



Forgot your password?