PFSweb customers can now begin to migrate to this new end-to-end solution. Roots, Canada's leading athletic lifestyle brand, has worked with PFSweb through the launch of both its U.S. and Canadian on-line retail businesses. Roots.com, an Internet Retailer Top 500 site, is expected to migrate to Demandware within the second quarter of 2008.

"By selecting the combined PFSweb and Demandware solution, we feel we have positioned Roots.com to serve our current and future customers with the best possible on-line experience. This end-to-end solution will allow us to offer an innovative, tightly integrated multi-channel experience that encourages cross shopping and is completely representative of the Roots experience", stated James Connell, Director of E-Commerce, Digital Marketing and New Media for Roots. "By engaging the combined efforts of PFSweb and Demandware, we will be able to focus on our core competency of operating our store, while benefiting from expertise of both organisations for IT and logistics."

After a thorough evaluation of ecommerce alternatives, including commercially available licensed applications and home-grown solutions, PFSweb chose to partner with Demandware for the clear operational advantages of its on-demand delivery model and its industry-leading ecommerce merchandising capabilities.

"Demandware provides us with a true competitive advantage", stated Mike Willoughby, President of PFSweb's Services Division. "Outsourcing should not force merchants to surrender brand and site control. By integrating Demandware's industry-leading ecommerce platform with PFSweb's market-leading fulfillment and customer care solutions, we are delivering a very unique end-to-end ecommerce outsourced solution that combines in-house site control with outsourced execution, comprised of best-of-breed components."

"The opportunity for a comprehensive technology and BPO product is significant", stated Rob Garf, Vice President and General Manager, Retail Strategies, in the February 2008 AMR Research Article, "PFSweb + Demandware". "Some 69% of retailers will replace their current e-commerce platform (for order capture, catalogue and content management, pricing and promotion management, and order inquiry) by the end of 2008, a recent AMR Research study shows."

PFSweb selected Demandware based on a number of differentiating capabilities, including:

• In-house merchandising control, outsourced business processes: Recognizing market frustration with the limited merchandising and site control provided by legacy outsourcing vendors, PFSweb required a solution that enables its clients to retain full control over site merchandising and the consumer experience. With Demandware, PFSweb clients have the option to fully control promotions, catalog, pricing and customer site experiences, while benefiting from PFSweb's robust support for fulfillment and customer care.
• Focus on ecommerce, not infrastructure: By embedding Demandware's on-demand ecommerce platform, PFSweb and its clients are relieved of the technical burdens and risk of managing the hardware, database, network and on-going maintenance required to run a best-in-class ecommerce application. This burden has led directly to the pitfalls of legacy outsourcing solutions, such as inflexible technologies and business processes, high service costs, and difficulty keeping sites current with the latest ecommerce innovations.
• Fast launch of new global businesses: A global provider, PFSweb serves customers that are expanding into international markets. PFSweb clients can leverage Demandware's multi-site, multi-brand and multi-currency capabilities to launch and drive new global brands quickly.
• Simplified access to ecommerce innovation: Because ecommerce is constantly evolving, outsourced providers must keep their clients at the forefront of innovation. By selecting Demandware, PFSweb clients can receive free automatic upgrades quarterly, enabling them to continually implement ecommerce best practices.
• Integration across customer touch points: As a provider of outsourced contact centers and a leader in high-touch customer care, PFSweb required that its ecommerce platform enable a seamless customer experience between the site and contact center. With Demandware, PFSweb can fully integrate pricing, promotions, product content and session behavior to the contact center, for better customer service and higher conversion.

"Time after time, customers are asking for a new end-to-end ecommerce solution, one that provides them with the freedom and flexibility to control their brands and customer site experiences, while enjoying the benefits of end-to-end process outsourcing", stated Stephan Schambach, Chairman and Founder, Demandware. "With PFSweb, the market now has a best-in-class solution - full control over the ecommerce storefront, with the backing of a leading end-to-end provider."