BFLY does another deal.
Bluefly.com and First USA to Launch Co-branded Credit Card
Updated 8:05 AM ET September 29, 1999
First USA to be First Advertiser Offered Promotional Space on Bluefly.com
NEW YORK (BUSINESS WIRE) - Bluefly, Inc. (NASDAQ SmallCap: BFLY), a leading Internet retailer of designer fashions and home furnishings at outlet store prices (www.bluefly.com), and First USA, a subsidiary of Bank One Corporation (NYSE:ONE), announced today the formation of a five year strategic marketing alliance through which First USA will offer a Bluefly-branded credit card to Bluefly's growing number of fashion shoppers.
First USA is the first third-party marketer to be offered promotional space on Bluefly.com. Under the terms of the agreement, Bluefly and First USA will jointly design a Bluefly-branded VISA or Mastercard that will offer superior rates, features and service for Bluefly customers. In addition, a direct link between Bluefly.com and First USA's Web site will permit instant credit card approval. Bluefly will receive a fee for each card issued under the agreement.
Since its launch in September 1998, Bluefly.com has quickly grown into one of the most heavily trafficked apparel shopping destinations on the Internet, with the Web site's unique visitor sessions growing to 5.1 million during the second quarter of 1999, up from 2.1 million during the first quarter of 1999 and 1.1 million during the fourth quarter of 1998. According to a recently published study of traffic to apparel shopping Web sites during June 1999, Bluefly had the second largest number of unique visitors to its Web site, ahead of such established brand names as J. Crew, L.L. Bean and Macy's.
"Although we have generated the type of traffic that could support an advertising-based revenue model, we have been reluctant to permit advertising on our Web site for fear that it would detract from our customers' experience and our brand image," said Ken Seiff, Chief Executive Officer of Bluefly. "By offering instant approval for a Bluefly-designed credit card with superior rates, features and service, the First USA alliance allows us to add a second revenue stream, while enhancing our customers' overall shopping experience at Bluefly and further building our own brand image. In addition, the agreement with First USA allows us the flexibility to pass additional savings on to our customers, providing them with even more compelling reasons to shop at Bluefly.com," added Seiff.
"First USA is committed to working with leaders in the e-commerce market, and we are excited to have the opportunity to add Bluefly.com to our growing list of partners in this area," said Jim Burke, First Vice President - Internet Marketing, First USA. "This program was designed specifically for Bluefly, and we believe that it will benefit our mutual customers and both of our companies," added Burke.
Bluefly is a NASDAQ SmallCap public company. Headquartered in New York City, in the heart of the fashion district, Bluefly aims to be the most enjoyable way to shop for designer and name brand apparel and home accessories at savings of 25 to 75 percent off of retail prices. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss" aspect of off-price shopping by allowing shoppers to see only those products and brands that are available for sale in their sizes. The online merchant has established strategic alliances with many of the most visited Web Sites and portals including AOL, Excite, Go Network, Lycos, MSN, Netcenter, Tripod, Women.com and Yahoo!. For more information, visit www.bluefly.com.
First USA (www.firstusa.com), a subsidiary of Bank One Corporation, is the nation's largest Visa and MasterCard lender. First USA offers credit cards for consumer and businesses under the First USA, First Card and Bank One names and on behalf of more than 2,200 marketing partners. Bank One Corporation, headquartered in Chicago, is the nation's fifth-largest bank holding company with assets of more than $256 billion. Bank One offers a full range of financial services to commercial and business customers and consumers.
This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-QSB, and 10-KSB. These risks and uncertainties include, but are not limited to, the following: the competitive nature of the business and the potential for competitors with greater resources to enter such business; risk of litigation for sale of unauthentic or damaged goods and litigation risks related to sales in foreign countries; consumer acceptance of the Internet as a medium for purchasing apparel; the Company's limited working capital and need for additional financing; recent losses and anticipated future losses; the startup nature of the Internet business; the capital intensive nature of such business (taking into account the need for advertising to promote such business); the dependence on third parties and certain relationships for certain services; the successful hiring and retaining of personnel; the dependence on continued growth of online commerce; rapid technological change; year 2000 issues; online commerce security risks; governmental regulation and legal uncertainties; management of potential growth; and unexpected changes in fashion trends.
Contact: Bluefly, Inc., New York Media relations: Margaret McCann, 212/944-8000 x229 Investor Relations: Jon Freedman, 212/944-8000 x247
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