FedEx Archives: 2002 Press Releases

( BW)(PA-FEDEX-GROUND)(FDX) FedEx Ground Has Shoppers Covered this Holiday Season; Business-to-business Unit Fills Store Shelves While Fedex Home Delivery Reaches Homes Across the Country

    Average daily volume for the week of November 25 is expected to top 2.6 million packages at FedEx Ground, an increase of more than 20 percent above the company's last reported average daily volume of 2.1 million packages for the quarter ended August 31, 2002. Retailers who are stocking their shelves for "black Friday," the traditional day after Thanksgiving kickoff to the holiday shopping season, will drive much of that increase.

    One such shipper is The Children's Place, a Secaucus, New Jersey-based specialty retailer of clothing and accessories for children ages newborn to 12 years. With more than 600 stores nationwide, the company designs, contracts to manufacture and sells a high-quality selection of clothing at prices that represent a substantial value compared to its competitors.

    A part of the clothier's strategy is to introduce each month an entirely new line of children's wear that significantly changes the selection and look of its stores. The Children's Place awarded a major portion of its ground delivery business to FedEx Ground earlier this year.

    According to Frank Loewen, director of logistics for The Children's Place, "We turned to FedEx Ground because they came in with an innovative approach for distributing product to and among our stores. Just as important, their follow-up support is the best I've ever encountered. We have found that FedEx Ground is much better suited to manage our peak season volumes than the traditional carriers and they've handled the transition of our business superbly."
    During last year's holiday shipping season, FedEx Ground surpassed the two-million-packages-a-day mark for the first time and has continued to grow at double-digit rates, reporting a 33 percent increase in both volume and revenue in its most recent fiscal quarter versus the same period last year. To meet growing customer demand, FedEx announced on Sept.30 a six-year, $1.8 billion ground network expansion plan that will nearly double FedEx Ground's daily package capacity to 4.8 million by the end of fiscal year 2009.

    "By fully leveraging the power of the FedEx brand and our improved service, we've made significant headway in penetrating targeted market segments, such as small shippers," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "We continue to benefit from ongoing technology-based service enhancements, particularly in overnight lanes, and the success of innovative new offerings such as FedEx Home Delivery."
    About a quarter of FedEx Ground's volume growth in its most recent fiscal quarter came from FedEx Home Delivery, which completed its final expansion in September to reach virtually full U.S. coverage. Launched in March 2000, FedEx Home Delivery is now entering its third peak season and remains the only transportation service designed exclusively to meet the needs of the home shopping market. Its customers benefit from standard evening and Saturday deliveries and an unmatched suite of premium options that include date-certain and appointment deliveries -- all backed by the industry's first Money-Back Guarantee for residential deliveries.

    This year marks the first holiday season that online shippers can use the service to reach virtually every residential address in the nation. The expected jump in Internet shopping during the upcoming holidays ranges from 17 percent (Gartner Inc.) to 32 percent (Jupitermedia Corp.) versus last year.

    For Coldwater Creek, a triple-channel retailer of women's apparel, jewelry, accessories and gifts through direct-mail catalogs, an e-commerce Web site and full-line retail stores in metropolitan areas, FedEx Home Delivery has become a crucial part of their supply chain. The Sandpoint, Idaho, company relies on FedEx Home Delivery to deliver orders originating in its Parkersburg, W.Va., distribution center across the country.

    "FedEx Home Delivery entered the scene with a plan to change the residential delivery market and they followed through with longer delivery hours and excellent service all around," said Gerard El Chaar, vice president of distribution for Coldwater Creek. "Not only are they providing Coldwater Creek with outstanding service, they're also creating positive experiences with our customers everyday -- and that's priceless."

    About FedEx Ground

    FedEx Ground, North America's second largest small-package ground carrier, has a network of more than 500 distribution hubs and local pickup-and-delivery terminals throughout the United States and Canada. The company reported annual revenue of $2.7 billion in fiscal year 2002.

    About FedEx Corporation

    With annual revenues of $21 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, the largest U.S. provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs clearance, international freight forwarding and trade facilitation.

    Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance, including expected package volume levels. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the timing, speed and magnitude of any economic recovery and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.

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    CONTACT: FedEx Ground
             Allison Sobczak, 412/859-5498

    KEYWORD: PENNSYLVANIA
    INDUSTRY KEYWORD: TRANSPORTATION CONSUMER/HOUSEHOLD RETAIL
    SOURCE: FedEx Ground