SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                            CURRENT REPORT PURSUANT
                         TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                                 July 29, 2004
                Date of Report (Date of earliest event reported)

                            PAYLESS SHOESOURCE, INC.
             (Exact Name of Registrant as Specified in its Charter)

                                    DELAWARE
                 (State or Other Jurisdiction of Incorporation)

         1-14770                                          43-1813160
(Commission File Number)                       (IRS Employer Identification No.)

                          3231 Southeast Sixth Avenue
                           Topeka, Kansas 66607-2207
               (Address of Principal Executive Office) (Zip Code)

                                 (785) 233-5171
              (Registrant's Telephone Number, Including Area Code)



Item 5 Other Events

      On July 29, 2004, Payless ShoeSource, Inc., a Delaware corporation, issued
a press release announcing the Company's review of alternatives for exiting
Parade. The full text of the press release is attached hereto as Exhibit 99.1
and incorporated by reference herein.

Exhibits:

      99.1 Press Release, dated July 29, 2004.



                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                                     PAYLESS SHOESOURCE, INC.

Date: July 29, 2004                              By: /s/ Ullrich E. Porzig
                                                     ---------------------------
                                                     Ullrich E. Porzig
                                                     Senior Vice President,
                                                     Chief Financial Officer and
                                                     Treasurer



                                 EXHIBIT INDEX

Exhibit No.              Exhibit
- -----------              -------

   99.1                  Press Release, dated July 29, 2004.