Q1 2010 Demandware Performance Index Shows 39% YOY Revenue Growth for Demandware Clients

WOBURN, Mass., May 13 /PRNewswire/ -- Demandware, Inc., the global leader in on-demand ecommerce, today announced the results of the Q1 2010 Demandware Performance Index (DPI), a new economic indicator for B2C ecommerce sales based on aggregated data from Demandware clients across 126 individual retail sites. According to the DPI, online retail is surging as economic conditions strengthen, with Demandware clients driving an average comparative growth rate of 39 percent in merchandise sold this year over last year for the quarter ended March 31, 2010.

The Demandware Performance Index indicates the following market dynamics for online retailing:

• Year over year growth for U.S. ecommerce sites was 18 percent, exceeding industry averages.
• European ecommerce sites performed especially strong, with 67% percent year over year growth.
• Department stores led with 76.1 percent growth, followed by apparel sites with 40.5 percent increase.
• Growth has been fueled by the addition of new sites to expand geographically, launch new brands or sub-brands and leverage new channels.
• The use of strong native SEO capabilities and actively tuning on-site search has shown measurable results in conversion.

The DPI report is available for download at www.demandware.com/dpi and includes additional data and analysis of these market trends.

"Demandware's platform and business model is optimized for high-growth brands, so it's not surprising to see our clients outperform general industry benchmarks," said Troy Brown, retail practice leader at Demandware. "We have incredibly savvy clients who have leveraged the power of the Demandware platform to deploy targeted merchandising and marketing strategies that have driven their performance especially high in Q1."

Demandware Performance Index Methodology

The Demandware Performance Index represents an economic indicator for B2C ecommerce sales based on aggregated data from Demandware clients from more than 126 individual sites. These businesses represent billions of dollars of online sales in the following verticals:  Apparel, Department Stores, Electronics, Gifting, Health & Beauty, Home & Garden, Mail Order / Catalog, Media & Entertainment, Sporting Goods, and Toys & Games.  The DPI is published quarterly. To download the full report, go to www.demandware.com/dpi.

About Demandware, Inc.

The trusted, global leader in on-demand ecommerce, Demandware revolutionizes how businesses deliver customized shopping experiences to consumers in the digital world. Only Demandware combines the on-demand ecommerce platform rated #1 by industry analysts, an open ecosystem of partners that extend the value of the platform, and measurable commitment by its employees to enabling client revenue growth. Demandware continually sets industry standards for market innovation and client satisfaction. Demandware clients include industry leaders such as Bare Escentuals, Barneys New York, Columbia Sportswear, Crocs, Frederick's of Hollywood, Hanover Direct, Jones Apparel Group, Lifetime Brands, Michaels Stores, Playmobil and Reitmans. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email [email protected].

SOURCE Demandware, Inc.

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