Ace Hardware Finds Success in Its 'Ship-to-Store' Program Enabled on GSI Commerce Platform; Multichannel Feature Generates 75 Percent of Online Dollars for Ace Hardware
KING OF PRUSSIA, Pa. – Aug. 7, 2007 – With multichannel retailing perhaps one of the hottest discussion topics in e-tailing circles today, Ace Hardware has found success in offering a ship-to-store program, a multichannel capability enabled by GSI Commerce Inc. (Nasdaq: GSIC), a leading provider of e-commerce solutions.
A ship-to-store program allows customers to order and purchase a product online and have it shipped to the nearest retail outlet for pick up. The program allows the multichannel retailer to use its store distribution network to fulfill individual customer orders. Ace Hardware offers free shipping on such orders, and if needed, allows returns of merchandise to the retail outlet where the order was picked up.
“Ship-to-store is very popular among online shoppers at Acehardware.com and accounts for the majority of purchases made on the site,” said Dana Kevish, e-commerce marketing manager for Ace Hardware. “Year-to-date, 75 percent of the total dollar volume generated from online purchases has come from customers using our ship-to-store program.
“At Ace, we find that many of our customers use ship-to-store for heavy items such as grills, patio furniture, storage sheds and snow blowers,” says Kevish. “The customer saves on shipping charges and can pick the item up at an Ace store convenient to them.
“We began using ship-to-store in 2003, and over time, the Ace program has received overwhelming acceptance with our independently owned store operators,” offers Kevish. “Stores are rewarded financially for their participation, and we have found that approximately 30 percent of the customers that use ship-to-store also end up making additional purchases when they arrive to pick up their item. We also know that our ship-to-store program acts as an online customer’s introduction to their local store. Our stores have gained new customers as a result of this program.”
Ship-to-store also complements our ability to “virtually extend” the offline store’s product assortment. An online store can display and offer a far greater assortment of products and provide additional product research, information and product comparison tools that typically are not available in an offline store.
Ace Hardware has an extensive, nationwide network of stores, and the vast majority of them participate in the ship-to-store program. To help customers find the most convenient store, Ace Hardware takes advantage of GSI’s implementation of advanced Google mapping technology.
“GSI provided Ace with a store locator that is state-of-the-art. When a customer visits Acehardware.com, we automatically calculate the number of stores closest to the location of the customer’s Internet protocol (IP) address and display this information in a space specifically reserved on our home page,” explains Kevish. “The customer can drill down on the stores, find additional store locations, get directions, find the store’s phone number, address, store hours, name of the local owner or store manager, as well as learn about in-store promotions and events.”
About Ace Hardware
Throughout its 80-year history, Ace Hardware has been known as the helpful hardware store by both customers and communities. In 2007, Ace Hardware was ranked the “Highest in Customer Satisfaction among Major Home Improvement Retail Stores” by J.D. Power and Associates in its inaugural study of the retail home improvement industry. With 4,600 hardware, home center and building materials stores that generate annual retail sales of more than $12 billion, Ace is the largest retailer-owned hardware cooperative in the industry. Headquartered in Oak Brook, Ill., Ace currently operates 14 distribution centers in the U.S. and a warehouse in Shanghai, China, and its retailers’ stores are located in all 50 states and 60 countries. More information about Ace can be found at www.acehardware.com.
About GSI Commerce
GSI Commerce® is a leading provider of e-commerce solutions that enable retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. We provide solutions for our partners through our integrated e-commerce platform, which is comprised of technology, logistics and customer care, and marketing services. We provide e-commerce solutions to more than 60 partners.
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.
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