UPS to add shipping sites at some retailers
“We will continue to bring our customers new omnichannel services and experiences that redefine convenience and make it easier to meet the demands of their increasingly busy lives.”
Kevin Hourican President, CVS Pharmacy
UPS plans to add package-pickup-or-send sites to CVS Pharmacy, Michaels and Advance Auto Parts stores throughout the country.
The move marks the shipping giant’s latest effort to compete with online giant Amazon and rival FedEx in the rapidly shifting world of delivery.
It’s especially aimed at customers who want the extra security of having a package delivered to a store, instead of left on their doorstep.
The deal more than doubles the number of UPS access points in the U.S. to about 21,000, said Kate Gutmann, UPS chief sales and solutions officer. About 90% of Americans now live within 5 miles of a site where they can ship or receive a package from UPS.
The expansion includes “most” of CVS’ about 9,600 stores, about 1,100 Michaels stores and an undisclosed number of Advance Auto Parts stores, UPS said.
For CVS, the arrangement is particularly significant. The retailer has been gradually repurposing floor space away from traditional retail goods, as the company loses ground on those items to Amazon.
“We will continue to bring our customers new omnichannel services and experiences that redefine convenience and make it easier to meet the demands of their increasingly busy lives,” CVS Pharmacy President Kevin Hourican said in an email.
The UPS-CVS alliance stands in contrast to the alliance of FedEx and CVS rival Walgreens. FedEx announced in late 2017 that it would begin providing package pickup and delivery services at more than 7,500 Walgreens stores.
The UPS deal brings CVS into close contact with Amazon because UPS access points accept Amazon returns.
In other words, you’ll be able to visit most CVS stores to return an Amazon product.
That might seem like too close for comfort for CVS. But in reality, the chain could benefit.
“It drives store traffic and oftentimes increased purchases,” Gutmann said.
CVS spokeswoman Erin Pensa said in an email: “We want to serve our customers in local communities with solutions that meet their needs and make their lives easier.”
Gutmann said the participating CVS, Michaels and Advance Auto Parts stores will be outfitted with special signage and staffed by store employees. For the most part, the UPS access points will be open whenever the store is open, she said.