• The Wall Street Journal (subscription required), Tuesday, November 21, 2006 12:15 PM

Walt Disney Co. and Payless ShoeSource will announce today that Payless will exclusively make and sell shoes featuring characters such as Disney Princesses, Winnie the Pooh and the cast from Power Rangers. It is both companies first direct-to-retail program for character footwear.

Disney has been moving toward direct-to-retail deals, in which it collaborates closely with a retailer that gets an exclusive product. That is different from the traditional retail model, in which the company signs deals with licensees, which take the products to retailers.

Payless, a leading retailer of kids shoes, has been shifting its strategy to sell more high-end footwear at moderate prices. Ranging between $12 and $22, the shoes will be available in Payless's almost 4,600 stores and on Payless.com. The footwear will start hitting Payless stores in the spring, with the full lines filling shelves over the summer.

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