Canada Post Borderfree Announces Expansion

Increased sales volume, new U.S. distribution center mark exploding activity

in Cross-border business for major U.S. retailers

Oct 31, 2005, 00:00 ET from Canada Post Borderfree

    TORONTO, Oct. 31 /PRNewswire/ -- Canada Post Borderfree, established in
 1999 and part of the Canada Post Group of Companies since 2002, today
 announced the opening of a second U.S. distribution center in Chicago as part
 of its continued growth strategy.  The original distribution center is located
 in Taylor, Michigan.
     A projected increase of sales that is 70% higher than last year's figures
 precipitated the need to open a second center to facilitate the influx of
 cross border packages.  Six of Borderfree's major merchants will begin
 delivering their Canadian orders to the Chicago center including Brookstone,
 Guess?, and Crate and Barrel as the geographic move is shorter for US western
 and midwestern retailers.  Going into the Holiday season, the additional
 capacity of the Chicago distribution center ensures that service levels are
     "For Canada Post Borderfree, this increase in activity means one thing:
 growth of the number of U.S. merchants doing business in Canada," stated
 Patrick Bartlett, president of Borderfree. "Imagine that in 2004, there were
 only 35 major catalogs circulating in Canada," Bartlett added.  "Now, just in
 time for the 2005 Holiday season, the Canadian marketplace will see over 46
 new U.S. multi-channel merchants mailing catalogs or doing business online,
 bringing the total of U.S. merchants to over 80."
     In addition to its extensive list of existing merchants, seven of the new
 46 ecommerce and catalog partners that will be added to Borderfree's "online"
 roster this quarter include Marciano, CardScan, Duluth Pack, InterfaceFLOR,
 Creative Irish Gifts, Smarthome, and Total Home Store. Even the newest clients
 have seen a marked increase in sales activity since going live with
     "Since launching with the Borderfree technology, we immediately began to
 see more Canadian purchases given that our website now offers pricing in
 Canadian currency and that we have a reliable shipping solution to deliver
 into Canada.  The fact that Borderfree began marketing its service to
 Canadians also contributed to the lift in business," said Amy Boyd, VP of
 Total Home Store, a high-end house wares merchant and Borderfree partner.
 "Because of that added exposure to the buying public, we expect significant
 increases over the next year and beyond."
     Total Home Store was one of a number of merchants who participated in the
 "Get a Grip" campaign that Borderfree launched in August of this year; the
 first of many in an on-going calendar of full-scale demand and multi-channel
 marketing campaigns designed to acquire new customers. The campaign leveraged
 the Snapshot(TM) segmentation system to target consumer segments most likely
 to purchase from the participating retailers.  The campaign highlighted a
 combination of Borderfree's online and catalog partners such as Brookstone,
 Tiger Direct, Restoration Hardware, eBags, and Victoria's Secret, and tracked
 their response rate success with Canadian consumers.
     The campaign resulted in over 5 million impressions and 43,000 catalog
 requests by an estimated 11,000 Canadians. The secondary objective of direct
 and multi-channel marketing campaigns was to acquire and collect consumer
 data, creating an asset of intelligence on Canadian direct purchasers.
     About Canada Post Borderfree
     Based in Toronto, Canada Post Borderfree is a strategic partner of multi-
 channel retailers planning to expand into international markets.  Through a
 suite of low integration technology and logistics solutions, Borderfree
 replicates the domestic consumer shopping experience and localizes it for
 seamless market entry.  Retail partners feel confident that their relationship
 is backed by the credibility and $6 billion operation of Canada Post
 Corporation, Canada's postal administration.  With proven technology and
 unparalleled market intelligence, Canada Post Borderfree has helped leading US
 retailers, such as Guess, Brookstone, Lands' End, and Sephora, achieve success
 in new markets since 1999.  Visit for more information.

SOURCE Canada Post Borderfree