Collective Brands, Inc. Announces Plan to Improve Product Distribution for Its North American Retail and Wholesale Customers by Consolidating the Company's Distribution Centers

Collective Brands to Close Stride Rite's Robeez(R) Distribution Center in Burnaby, British Columbia, Later This Year and Huntington, Ind., Distribution Center in June 2009; Shifts to Three Primary U.S. Centers to Leverage State-of-the-Art Systems and Maximize Product Flow Efficiency

TOPEKA, Kan., March 11 /PRNewswire-FirstCall/ -- Collective Brands, Inc. (NYSE:PSS) today announced plans to consolidate its five primary North American distribution centers into three U.S. centers resulting in a new structure that will improve distribution of the company's merchandise to its North American wholesale and retail customers.

"This move enhances the operational efficiency of merchandise distribution across the company to benefit our wholesale and retail customers," said Matt Rubel, chief executive officer of Collective Brands, Inc. "This business decision allows us to best leverage our geographically aligned distribution centers for maximum cost-efficiency and effectiveness, ensuring faster distribution of all Collective Brands, Inc. products to customers."

To meet the capacity and technology needs of the expanding Robeez brand, the company intends to shift the distribution of Robeez(R) product from its Burnaby BC distribution center to its Huntington Ind. distribution center, and ultimately to its new Eastern Distribution Center in Brookville, Ohio. The company intends to close its Burnaby BC distribution center in September 2008.

The 600,000-square-foot Eastern Distribution Center is currently under construction and due to open later this year. In spring 2009, the company intends to close its Huntington, Ind. distribution center.

As a result of these moves, Collective Brands anticipates that by late 2009 it will operate three U.S. distribution centers serving North American customers: the Western Distribution Center in Redlands, Calif.; the Louisville Distribution Center in the southeastern region; and the Eastern Distribution Center in Brookville.

Approximately 180 associates are affected: about 40 associates in Burnaby and 140 in Huntington. Collective Brands said it is giving significant lead time to all affected associates -- as much as one and one-half years in the case of the Huntington facility closure. The company plans to work closely with local job resources and training centers, as well as distribution center management to transition affected employees with severance packages and outplacement support. The company also expects to create about 130 new jobs -- 100 at its new Eastern Distribution Center in Brookville and 30 jobs at its Louisville Distribution Center.

Collective Brands, Inc. is a leader in bringing compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. The company operates three strategic units covering a powerful brand portfolio, as well as multiple price points and selling channels including retail, wholesale, ecommerce and licensing. Collective Brands, Inc. includes Payless ShoeSource, focused on democratizing fashion and design in footwear and accessories through its more than 4,500-store retail chain, with its brands American Eagle(R), Airwalk(R), Dexter(R), Champion(R) and designer collections Abaete for Payless, Lela Rose for Payless and alice + olivia for Payless, among others; Stride Rite, focused on lifestyle and athletic branded footwear and high-quality children's footwear sold primarily through wholesaling, with its brands including Stride Rite(R), Keds(R), Sperry Top-Sider(R), Robeez(R) Saucony(R) and Tommy Hilfiger(R) Footwear, among others; and Collective Licensing International, the brand development, management and global licensing unit, with such youth lifestyle brands as Airwalk(R), Vision Street Wear(R), Lamar(R), Sims(R), LTD(R), genetic(R), Dukes(R), Rage(R), Ultra-Wheels(R), and Skate Attack(R). Information about, and links for shopping on, each of the Collective Brand's units can be found at http://www.collectivebrands.com/.

First Call Analyst:
FCMN Contact:

Source: Collective Brands, Inc.

CONTACT: media, Mardi Larson, +1-612-928-0202, or financial, James
Grant, +1-785-559-5321, both for Collective Brands, Inc.

Web site:

http://www.collectivebrands.com/

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