DOW JONES NEWSWIRES
FedEx Corp. (FDX) and OfficeMax Inc. (OMX) reached a multiyear
agreement to offer domestic FedEx express and ground shipping
services in more than 900 OfficeMax stores beginning this fall as
the struggling office-supply retailer looks to boost traffic at its
stores.
OfficeMax, the No. 3 office-supply retailer behind Staples Inc.
(SPLS) and Office Depot Inc. (ODP), has seen sales drop along with
consumer spending. As such, the company has suspended its quarterly
dividend, eliminated jobs and delayed its store-remodeling program
until economic conditions improve.
The companies said FedEx services were rolled out in certain
Chicago and Memphis, Tenn., locations this month, and all U.S.
OfficeMax stores are expected to offer domestic FedEx shipping
capabilities by the end of September.
Financial terms of the deal weren't disclosed.
"This expansion of the FedEx retail network is designed to
benefit express and ground shipping customers, including small
business shippers and consumers," FedEx Executive Vice President T.
Michael Glenn said.
FedEx, often considered a bellwether for the U.S. economy
because of its massive shipping volume, has struggled during the
economic downturn as orders and sales slow across a range of
industries. In recent months, FedEx has cut jobs and reduced
capacity at its express and freight segments to deal with the
slowdown.
Chief Financial Officer Alan B. Graf Jr. said earlier this month
the operating environment through November is expected to be
"extremely difficult" as manufacturing activity is expected to be
down year-over-year through the summer.
FedEx has 52,000 shipping locations in its network.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com