On Tuesday, FedEx Corporation (NYSE: FDX) announced that it will add FedEx Office stores inside 500 Walmart Inc (NYSE: WMT) locations in the United States in the next two years.
According to the company, the mini-stores will be 450 to 700 square feet in size with around 2,000 FedEx employees across all locations. The plan is being tested at Walmart in North Carolina, South Carolina, Virginia, Arkansas, Texas and Colorado, and has already surpassed expectations.
Currently, FedEx operates around 1,900 company-owned stores and locations in the United States, and the partnership is expected to help FedEx and Walmart to attract new clients and deal with online order returns.
“We gravitated toward Walmart because they have this fantastic physical infrastructure,” said Brian Philips, the CEO of FedEx Office. “We are already great partners with Walmart on the transportation side, so it was natural for us to talk about a store-within-a-store format.”
“What we found was that 88 percent of customers who come to our location are there to do business with us but over half of them are doing business with the retailer as well. They are buying something at Walmart while they are there,” Philips said.