GSI Commerce and Dick's Sporting Goods Extend E-Commerce Agreement With New 15-Year Contract
New deal to provide customers with enhanced multichannel experience including in-store pickup and in-store ordering; GSI transitions buying and merchandising responsibility to Dick's Sporting Goods for its e-commerce business in '09 enabling consistent assortment of merchandise between channels
KING OF PRUSSIA, Pa. and PITTSBURGH, Aug 26, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- GSI
Commerce Inc. (Nasdaq: GSIC), a leading provider of e-commerce and
multichannel solutions, and Dick's Sporting Goods Inc. (NYSE: DKS), announced
today that they have signed a new 15-year contract, extending their successful
relationship. Sales through dickssportinggoods.com have grown to more than 10
times the sales it experienced since the beginning of its relationship with
GSI in 2001.
"Our goal is to provide a high-quality, seamless shopping experience for
our customers across all channels," said Edward W. Stack, chairman and CEO of
Dick's Sporting Goods. "We've had a very successful relationship with GSI for
the past seven years, evidenced by the significant growth of our e-commerce
business. This new deal gives us even more flexibility, greater control and
ultimately enables us to better serve our customers while accelerating our
multichannel strategy."
Under the agreement, Dick's Sporting Goods will be the seller of
merchandise through its e-commerce business beginning Feb. 1, 2009, and GSI
will continue to provide Dick's Sporting Goods with a full suite of services,
including e-commerce technology, customer service, fulfillment, drop ship
management, interactive marketing and e-mail marketing. Dick's Sporting Goods
will concentrate on enhancing its customers' experience by better aligning
their online assortment of merchandise with their stores. New capabilities
such as in-store pickup and in-store ordering will also be added, making the
experience more convenient for customers.
"We are excited to take our partnership with Dick's Sporting Goods to the
next level," said Michael G. Rubin, chairman and CEO of GSI. "This new
agreement will better position us to maximize value for both companies. We
believe Dick's Sporting Goods has tremendous multichannel potential given
their position as one of the largest and fasting growing retailers in the
United States and the preeminent player in sporting goods retail."
Consistent with Dick's Sporting Goods' goal to have a seamless
multichannel operation, under the new agreement, Dick's Sporting Goods will
buy and own the sporting goods inventory sold online. This is a significant
change from the prior agreement and is comparable with GSI's other
multichannel non-owned inventory e-commerce agreements.
Dick's Sporting Goods' current contract with GSI was set to expire in
2011. "As we conducted a thorough evaluation of potential options for how to
better serve our customers, we determined that continuing to work with GSI was
the best alternative for us," said Stack. "We believe that GSI offers the
best solution that complements our long-term strategic plan and that they are
the right e-commerce provider to help us grow our multichannel business
another 10 times over the next decade."
Related to the deal, gsi interactive(sm), a division of GSI, was selected
as the digital marketing agency of record for Dick's Sporting Goods, providing
design services, paid search, comparison shopping engines (CSEs) and affiliate
marketing services. Dick's Sporting Goods also has agreed to continue to
utilize the services of e-Dialog, a wholly owned subsidiary of GSI, to
continue to supply Dick's Sporting Goods with enhanced permission-based e-mail
marketing services to its Scorecard members designed to maximize their
long-term customer value.
About Dick's Sporting Goods, Inc.
Dick's Sporting Goods, Inc. is an authentic full-line sporting goods
retailer offering a broad assortment of brand name sporting goods equipment,
apparel, and footwear in a specialty store environment. As of August 2, 2008,
the Company operated 357 Dick's Sporting Goods stores in 38 states primarily
throughout the eastern half of the U.S. The Company also owns Golf Galaxy,
Inc., a multi-channel golf specialty retailer, with 84 stores in 30 states,
ecommerce websites and catalog operations and Chick's Sporting Goods, Inc.,
which operates 15 specialty sporting goods stores in Southern California.
About GSI Commerce
GSI Commerce(R) (www.gsicommerce.com) is a leading provider of services
that enable e-commerce, multichannel retailing and interactive marketing for
large, business-to-consumer (b2c) enterprises in the U.S. and internationally.
We deliver customized e-commerce solutions through an e-commerce platform,
which is comprised of technology, fulfillment and customer care. We offer each
of the platform's components on a modular basis, or as part of an integrated,
end-to-end solution. We also offer a full suite of interactive marketing
services through two divisions, gsi interactive(sm) and e-Dialog Inc.
(www.e-dialog.com).
Forward-Looking Statements
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.
Contact: Contact:
GSI Commerce, Inc. Dick's Sporting Goods
Corporate Marketing Anne-Marie Megela
610.491.7474 Director, Investor Relations
news@gsicommerce.com 724-273-3400
investors@dcsg.com
SOURCE GSI Commerce, Inc.
http://www.gsicommerce.com
Copyright (C) 2008 PR Newswire. All rights reserved



