Payless to close 400 stores

Payless ShoeSource’s “Buy One Get One Half Off” gimmick has failed to get its customers to pay enough.

The retailer recently filed for bankruptcy and plans to shutter 400 of its stores around the country.

A bump in online competition from the likes of Zappos has cut into the company’s profits. After the closings, the Topeka, Kansas-based company will retain 4,000 stores worldwide.

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Payless’ chief executive, Paul Jones, said:

This is a difficult, but necessary, decision, driven by the continued challenges of the retail environment, which will only intensify. We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process.

The company said that it would begin the process immediately of deciding which of its stores to shutter. Employees would be offered positions at nearby stores or offered severance. It did not rule out further store closings.

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