FedEx, Dollar General Partner on In-Store Parcel Service

FedEx will offer pickup and drop-off services inside Dollar General stores, expanding the shipping company’s reach in rural America. Memphis-based FedEx on Monday announced the alliance with fellow Tennessee company Dollar General Corp. The companies plan to begin adding FedEx services in more than 1,500 Dollar General stores by late summer and expand to more than 8,000 locations by the end of 2020. FedEx said the addition of Dollar General will extend its retail convenience network to more than 62,000 locations and put it within five miles of more than 90 percent of the U.S. population. The alliance with Dollar General will build on previous growth in a network that includes most Walgreens stores and selected Kroger and Albertsons food stores.

Total Retail's Take: The partnership figures to provide benefits to both organizations. For FedEx, expanding its retail network improves its standing in the e-commerce market, offering consumers a secure, convenient way to receive and return packages. Furthermore, the in-store service saves FedEx money as fewer packages will have to be delivered to individual homes and businesses, particularly in the rural areas where most Dollar General stores are located. For Dollar General, offering the service will help to drive traffic into its stores, which the retailer can potentially convert into customers. Also, by offering the package service in the rural communities in which its stores are located, Dollar General figures to gain goodwill from consumers in those markets, making them more likely to shop with the brand.