NFLShop.com Increased Sales 75 Percent In First Season Operating on GSI’s Platform
KING OF PRUSSIA, Pa., and NEW YORK – Oct. 22, 2007 – Leading e-commerce solutions provider GSI Commerce Inc. (Nasdaq: GSIC) and the National Football League (NFL) today announced that they have signed a multiyear extension to their e-commerce agreement. With the extension, GSI continues to provide the NFL’s online store (www.NFLShop.com) with e-commerce technology, merchandising, fulfillment and customer care solutions. In addition, through its marketing services agency, gsi interactiveSM, GSI will continue to provide catalog services, paid search, affiliate marketing, comparison shopping engine placement, display advertising and email marketing.
“Our strategic partnership with GSI increased our business significantly and helped shape an aggressive and very successful approach to marketing NFL-licensed products through multiple channels,” said Eric Grubman, NFL executive vice president. “We look forward to continuing innovation from GSI as we expand and enhance the NFLShop.com experience for our loyal fans and customers.”
“This extension provides a tremendous opportunity for GSI and the NFL to pursue other business building opportunities, just like we’ve done with providing customization services for team and player jerseys and building a new channel to sell NFL product through our relationship with QVC,” said Michael G. Rubin, chairman, president and CEO of GSI Commerce. “I look forward to continuing to grow the NFLShop.com business together in the future.”
A few of the significant multichannel accomplishments of the past year include:
• Product customization
GSI and the NFL capitalized on a major opportunity in 2006 when GSI enhanced its product customization capabilities to support the NFL, personalizing nearly 100,000 NFL jerseys in less than six months.
• NFL sponsorship with national brands
GSI and the NFL teamed with several prominent consumer brands, including Coors Brewing Company, Frito Lay division of PepsiCo., Samsung Electronics and Bank of America to market NFLShop.com.
• Enhanced merchandising
Through its partnership with GSI, NFLShop.com significantly increased its online assortment of licensed NFL products. The store now features a wide variety of products from all 32 NFL teams including authentic, replica and customized team and player jerseys, home furnishings, office accessories, collectibles, tailgating products, DVDs and other fan gear.
• Multichannel success
o Television retail
GSI, the NFL and QVC entered into a strategic agreement to create a new, multi-channel marketing opportunity for NFL-licensed products. The alliance made QVC the NFL’s “official television retailer” and established GSI as the exclusive provider of NFL-licensed merchandise to QVC. The inaugural effort resulted in a GSI record for the most NFL jerseys sold in a single day, more than doubling initial sales estimates.
o Gift cards In addition to online gift certificates, GSI and the NFL provide consumers the option to purchase gift cards in physical retail points of distribution at national retailers. The gift cards, redeemable on NFLShop.com, are also used in promotions and incentive offers.
o Catalogs Additional licensed product sales were driven by the more than nine million catalogs that GSI mailed to NFL fans across the country last season.
GSI and NFL’s future plans for NFLShop.com include a fan gift registry, an interactive community feature called “bragging boards,” a “shop-within-a-shop” for kids, enhanced wish list functionality and more robust RSS feeds and blogs.
In addition to this relationship with the National Football League, GSI has agreements to manage the Web stores for all the major professional sports leagues in the United States including the NBA, the NHL, MLB and NASCAR.
About GSI Commerce
GSI Commerce® is a leading provider of e-commerce and multichannel solutions that enable retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. We provide solutions for more than 80 partners through our integrated e-commerce platform, comprised of four components: technology, customer care, fulfillment and marketing services.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made in this release, other than statements of historical fact, are forward-looking statements. Actual results might differ materially from what is expressed or implied by these forward-looking statements. Additional information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements.