March 20, 2018 3:15 PM, EDT

FedEx Office to Open in 500 Walmart Stores Across US in Next Two Years

Mike Mozart/Flickr

You can get everything from food and clothing to tools and toys at Walmart. Now, add packing and shipping to that list.

FedEx Corp. announced March 20 that it will open 500 FedEx office locations in Walmart Inc. stores across the country over the next two years.

FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest North American for-hire carriers. Walmart ranks No. 3 on the Transport Topics Top 100 list of the largest private carriers in North America.

People receiving packages will also have the option of having them sent to a Walmart-based FedEx office, where they’ll be held for five business days.

The shipper ran a pilot program at 47 stores in six states.

“The growth of our store network to 500 new locations brings our brand even closer to busy consumers who have told us they are seeking secure, reliable options for packing, shipping and receiving packages,” FedEx CEO Brian Philips said in a statement.

FedEx Office has approximately 1,900 company-owned locations nationwide, according to the company.

Last month, news broke that Amazon planned to test its own delivery service, which would bring packages from its third-party sellers’ warehouses to Amazon’s fulfillment centers and could cut a day from the delivery time. Shipping services Amazon already uses, such as FedEx, UPS, the U.S. Postal Service and local companies, would still be the ones to deliver packages from the Amazon fulfillment centers to shoppers’ homes — what the industry calls the last mile.

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UPS ranks No. 1 on the TT Top 100 list of for-hire carriers.

However, Amazon could eventually handle every leg of a package’s journey and eliminate the need for the delivery services currently used. With the massive online retailer’s volume, a service like this could trim delivery times and shipping costs.

Reacting to Amazon’s plan, FedEx said that no one customer makes up more than 3% of its business.

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