Leading Nutritional Supplement Retailer GNC Corporation Partners With GSI Commerce for Comprehensive e-Commerce Solution
KING OF PRUSSIA, Pa., May 17, 2005 – GSI Commerce Inc. (Nasdaq: GSIC) today announced it has signed a multi-year agreement to provide a comprehensive e-commerce solution for General Nutrition Corporation (GNC), the largest global specialty retailer of nutritional supplements.
The agreement calls for GSI Commerce to provide GNC with an e-commerce solution that includes core technology, fulfillment and customer care operations. GNC, which currently sells its products online through a third-party, will open its own online store using GSI Commerce’s solution. GNC’s new e-commerce business is expected to launch in the fourth quarter of this year.
“The migration from our current third-party selling model to a model in which we are taking full control of our direct-to-consumer channel in a way that most effectively capitalizes on our strong brand awareness and existing store base is an important step for GNC,” said Joseph Fortunato, executive vice president and chief operating officer of GNC Corporation. “We evaluated multiple options and found GSI Commerce to be the leader in this space based on their proven expertise in building direct-to-consumer businesses, and we believe the company is the right partner for GNC.”
“We are excited to be teaming up with the specialty leader of nutritional supplements,” said Damon Mintzer, executive vice president of sales for GSI Commerce. “GNC’s strong brand awareness, loyal customer base and broad proprietary line of merchandise are all key components for building a meaningful direct-to-consumer business.”
GNC is headquartered in Pittsburgh, Pa., and operates 2,644 company-owned stores in the Unites States and Canada and has 1,261 domestic franchised locations, 1,043 Rite Aid “store-within-a-store” locations and 773 international franchised locations.
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 three components: core technology, supporting infrastructure and partner services. We either operate, or will operate pursuant to signed agreements, all or portions of the e-commerce businesses for approximately 50 partners.
Forward-Looking Statements
All statements made in this release other than statements of historical fact are or will be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “should,” “guidance,” “potential,” “continue,” “project,” “forecast,” “confident,” “prospects,” and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of GSI Commerce and the industries and markets in which GSI Commerce operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect GSI Commerce’s business, financial condition and operating results include the effects of changes in the economy, consumer spending, the financial markets and the industries in which GSI Commerce and its partners operate, changes affecting the Internet and e-commerce, the ability of GSI Commerce to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of GSI Commerce to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of GSI Commerce to attract and retain qualified personnel, the ability of GSI Commerce to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. More 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, except as otherwise specifically stated by GSI Commerce.
Contact:
Michael Conn
Senior Vice President, Corp. Development
tel: 610-491-7002
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Greg Ryan
Director, Corp. Communications
tel: 610-491-7294
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