This program allows Walmart to sell its products more effectively to customers who are rarely at home during the day. Also FedEx Office delivery significantly reduces the cost of delivery of large and heavy items making Walmart's site-to-store via FedEx Office a major advantage for online sales.
Randy Scarborough, vice president of marketing for FedEx Office comments to the Wall Street Journal clearly indicates that FedEx Office is looking at parcel pick-up as a significant new revenue stream for its FedEx Office division. He stated that FedEx Office expects "other large retailers to take advantage of this." He further noted that FedEx is planning its "physical network to accommodate this because we do anticipate additional demand."
The current experiment most likely is focusing on:
- removing the logistical kinks in the process both within the FedEx distribution networks and within the FedEx Office retail locations,
- help FedEx determine the revenue that a FedEx Office location will receive for acting as a parcel delivery location and
- help Walmart identify the customers and products that are most likely shipped to a FedEx Office location and which ones still require home delivery.