Package delivery giant FedEx Corporation (NYSE:FDX) has inked a major deal with Walgreen’s to offer pickup and dropoff services at thousands of Walgreen’s locations around the country.
The long-term alliance will kick off within the next several months. The move could give FedEx a sizable leg up on rivals like UPS, given Walgreen’s huge footprint — especially in urban areas.
FDX commented via press release:
“Walgreens, with its strong focus on customer care, is the perfect retailer to help us continue to meet the growing demand for convenient, secure dropoff and pickup options, and our research has shown that customers rank pharmacies as a preferred location for accessing their e-commerce shipments,” said Raj Subramaniam, executive vice president, chief marketing and communications officer, FedEx Corporation. “The addition of Walgreens locations to the existing network of FedEx retail offerings will substantially increase customer access to staffed pickup and dropoff locations and enhance convenient access to FedEx Ground and FedEx Express package shipment and dropoff options. We look forward to offering these capabilities to customers, and continuing to meet their e-commerce shipping needs with these flexible options.”
After an initial small-time rollout in the spring, the two companies expect to scale the program to include thousands of stores by the end of the year. Eventually, it will be available across almost 8,000 Walgreen’s locations by the end of 2018.
FedEx Corporation shares rose $0.18 (+0.10%) in premarket trading Wednesday. Year-to-date, FDX has gained 0.97%, versus a 1.20% rise in the benchmark S&P 500 index during the same period.