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Payless sold discount shoes at luxury prices — and it worked!

Payless sold discount shoes at luxury prices — and it worked!

If you serve fast food on white tablecloths in a tony-looking restaurant, people sometimes think it’s haute cuisine. (At the very least, it tastes a lot different than it does when you’re scarfing it down from a drive-through bag).

It turns out you can do the same for bargain kicks by showcasing the footwear against the kind of chic backdrop usually reserved for luxury labels like Jimmy Choo and getting people to pay outrageous markups.

That’s what Payless did recently in Santa Monica, taking over a former Armani store and stocking it with $19.99 pumps and $39.99 boots. The chain, via agency DCX Growth Accelerator, invited groups of influencers to the grand opening of “Palessi” and asked their opinions on the “designer” wares.

Partygoers, having no idea they were looking at discount staples from the mall scene, said they’d pay hundreds of dollars for the stylish shoes, praising the look, materials and workmanship. Top offer: $640, which translates to a 1,800 percent markup, and Palessi sold about $3,000 worth of product in the first few hours of the stunt.

Payless, or “Palessi,” did ring up those purchases but didn’t keep the money. Influencers got their cash back, along with free shoes. Their reactions caught in the short- and longer-form ads—those shocked “gotcha” moments—are fairly priceless.

The retailer “wanted to push the social experiment genre to new extremes, while simultaneously using it to make a cultural statement,” said Doug Cameron, DCX Growth Accelerator’s chief creative officer. “Payless customers share a pragmatist point of view, and we thought it would be provocative to use this ideology to challenge today’s image-conscious fashion influencer culture.”

Payless CMO Sarah Couch says the chain aimed to tackle the brand’s perception issues head-on at a time when retailers are feeling more heat than ever from giant e-commerce sites.

“The campaign plays off of the enormous discrepancy and aims to remind consumers we are still a relevant place to shop for affordable fashion,” Couch says.

 

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