FedEx alliance paves way for its biggest retail expansion in Canada
FedEx Express has agreed a deal that could pave the way to its largest Canadian retail expansion in the company’s history. The company said it has reached agreement with the Home Hardware Stores Limited which allows individual franchisees of the chain to host full-service FedEx Authorized ShipCentres within their stores.
FedEx believes that in particular, the expansion of its retail network in this way will provide consumers with more local pick-up points for their e-commerce purchases.
The Home Hardware Stores network currently comprises close to 1,100 stores across Canada.
FedEx said it was responding to the potential for e-commerce growth, stating that online shopping is the “largest driving force in the global economy” at the moment with $1 trillion in sales projected for 2016.
About 25.5m Canadians use the Internet every day, the company said, adding that it believed 60% were involved in some form of online shopping during the festive season.
Lisa Lisson, president of FedEx Express Canada, said:
“Our alliance with Home Hardware expands our retail footprint across Canada, giving online shoppers more points-of-access options to meet their shipping needs,” she said.
“Home Hardware is a strong, renowned Canadian brand and the opportunity our alliance creates will result in a better e-commerce experience for more Canadians.”
Home Hardware
FedEx said the retail chain is the largest independent, Dealer-owned hardware, lumber, building materials and furniture cooperative in Canada. The cooperative was founded in 1964 by 122 independent dealers, and now has retail sales of more than $5.4bn a year.
FedEx Authorized ShipCentres will be rolled out across Canada in a series of waves throughout this year, the firm said.
For Home Hardware Stores, the tie-up with FedEx Express would offer the potential for more customers to visit their physical stores in order to pick up online purchases, and provide a click and collect service for hardware products.
Paul Straus, President & Chief Executive Officer for Home Hardware Stores Limited, said the FedEx partnership will mean more convenience for his customers, as well as the growth of customer footfall. “As Home Hardware celebrates our 50th anniversary this year, we also look ahead towards the next 50 years. This exciting alliance with FedEx Express Canada is one of the many ways in which we continue to innovate to add more value to our customers’ shopping experience,” he said.
The move by FedEx to partner with Home Hardware in order to provide alternative delivery points for consumer e-commerce comes while rivals UPS invest in parcel shops to provide a similar purpose, starting with Europe.
“Through Home Hardware, FedEx Express Canada and FedEx Ground will be more easily accessible to Canadian communities than ever before. Conversely, hosting a FedEx Authorized ShipCentre allows Home Hardware to connect their customers within their respective communities to the rest of Canada and the world with efficiency and effectiveness,” said Lisson.
