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Why Walgreens’ photo counters will feature FedEx package pickup and dropoff

January 16, 2017 03:00 PM
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A new arrangement between FedEx Corp. and Walgreen Co. will allow consumers to have their e-commerce packages delivered to Walgreens stores for pickup. Consumers also would be able to drop off packages at the drugstores.

The program is expected to launch in the spring on a small scale and expand to thousands of Walgreen stores later this year with availability throughout the chain’s nearly 8,000 stores by fall 2018. Walgreens is No. 37 in the Internet Retailer 2016 Top 500 Guide.

“Our Walgreens stores will be able to accept pre-labeled and pre-packaged shipments, most likely at the existing photo department counter. A Walgreens employee will accept the package,” a Walgreens spokesman says. “Customers also can have a shipment delivered to the store, and then pick it up at a time that is convenient for them. The packages will be kept in a secure cabinet until the customer comes to pick it up.”

Details are still being finalized, but FedEx chief marketing officer Raj Subramaniam said, “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.”

“As e-commerce continues to boom, customers are telling us they want access to more choices for delivery locations, and we’re listening,” a FedEx representative says. “This long-term agreement will significantly expand and enhance the FedEx Onsite network, and will offer customers thousands of convenient locations to drop off and pick up FedEx packages in the United States. Through FedEx Onsite, we have alliances with grocery and specialty retail stores and look forward to adding Walgreens to our network of capabilities.” The spokesman declined to detail the length of the agreement with Walgreens.

In November, online electronic retailer Newegg Inc. (No. 17) added a checkout feature that lets Newegg.com customers choose to have their package held for pickup at one of more than 2,500 FedEx locations, including 1,800 FedEx retail stores. Consumers select a shipping option at checkout and on the shipping page choose “Ship to a FedEx Location” and the store where the package will be held.

FedEx also has a program with Office Depot Inc. (No. 9) that provides access to the carrier’s shipping services in more than 1,500 Office Depot and OfficeMax stores in the United States. At these sites, consumers can use self-service packing areas that have packing and shipping supplies available for purchase in-store, and store employees are available to help pack shipments at some locations, according to FedEx.

 

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