Global Sports CEO Michael Rubin appeared on CNBC
yesterday to discuss details of the newly formed Global
Sports Interactive (GSI), which will handle the e-commerce
outsourcing deals with The Athlete's Foot, Sports &
Recreation, MC Sports, Sports Chalet and other retailers.
Rubin, when asked if GSI owns the inventory that it will
sell on the Web sites it will operate for the retailers:
"Yes, we own all the inventory, but again we also record
over 90 percent of the sales. So what we've really done,
again, is figured out an efficient way to drive traffic,
versus going out and spending a tremendous amount of money
to advertise a new brand and acquire new customers." Rubin
said that financing for GSI comes "primarily" from parent-
company Global Sports, but he added, "We've had a tremendous
amount of interest from people and we're currently
evaluating different offers we have for capital and we plan
to come to conclusion in the second quarter" (CNBC, 5/11).
COMPETITION: Rubin, on other competition: "I think that
certain manufacturers may decide to go online directly. I
think the big issue is that the brands we represent have
enormous market share. They're five of the 18 largest
retailers in the country, and they have relationships with
customers. And customers are used to buying from these
companies so I think for the consumer, they get to buy from
brands they trust" ("Squawk Box," CNBC, 5/10).
