Payless ShoeSource, whose low-cost shoe stores dot shopping malls and streets across the US, is to open its first stores in Russia next year under a franchise agreement with MH Alshaya, the Kuwaiti retail group.

Collective Brands, the holding company for both Payless and StartRite shoe brands, said it expected five stores to open in Russia next year, increasing to 90 within five years. Collective and Alshaya have a long-term objective of more than 300 Payless stores.