Deliveries are part of everyday life. Whether you’re sending care packages to your kids in college or treating yourself to products from Amazon, we all rely on delivery services on a regular basis. Even so, shrinking needs forced a major shipping company to close 90 stores across the country, meaning you could soon be saying goodbye to a physical location near you. Read on to find out which renowned delivery service is closing its stores.
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We’ve all noticed price hikes across the board when shopping at the grocery store, dining out, or renewing a lease. In August, The New York Times reported that prices remained high, although we did see some relief at the gas pump. Compared to 2021, prices rose 8.3% last month, the outlet reported, citing a Sept. 13 consumer price index report.
Since March, the federal authorities have tried to control inflation by raising interest rates. But Americans have yet to see significant relief, for The New York Timeswhich could affect unemployment rates when central bankers “suppress” the economy even more, taking tougher measures to control prices.
At the same time, we continue to hear about lingering issues with the global supply chain and the shipping industry, which is still struggling amid the COVID pandemic. Today, economic difficulties also slowed global parcel volume and a major shipping company was forced to take action.
If you rely on FedEx for your shipping needs, or even just to make copies when you need them, you may be concerned to learn that the company will be closing more than 90 FedEx offices across the United States. . The plans have been unveiled in a report on the company’s preliminary first-quarter financial results, released Sept. 15.
FedEx did not provide additional details about which locations would be closed or when consumers can expect to see “closed” signs at their local store. In an email to Better lifeFedEx said it would not provide further comment at this time.
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In the report, the company notes that first-quarter results were “negatively impacted by weak global volumes that accelerated in the final weeks of the quarter.”
FedEx was specifically hit by “macroeconomic weakness in Asia and service issues in Europe,” which led to a revenue shortfall of nearly $500 million, according to the report. For FedEx Ground, a subsidiary of FedEx, the shortfall was $300 million.
“We are tackling these headwinds quickly, but given the speed at which conditions have changed, the first quarter results are below our expectations,” he added. Raj Subramaniamchairman and chief executive officer of FedEx Corporation, said in a statement.
Subramaniam confirmed that FedEx remains consistent with targets set earlier this year, adding that despite “disappointing” performance, the shipping company is “aggressively accelerating cost reduction efforts and evaluating additional measures to improve productivity, reduce variable costs and implement structural measures”. cost reduction initiatives.”
This includes reducing flight frequency, temporarily parking planes, closing five corporate offices, curtailing Sunday operations at several FedEx ground locations, and enacting a hiring freeze, the report said. .
However, after the report was released, investors were apparently wary of the company’s economic situation. FedEx the stock fell 22% on September 16, and UPS stock was collateral damage, down 5%, The New York Times reported.
To complicate matters, in a Sept. 15 interview with CNBC Jim CramerSubramaniam confirmed that FedEx saw weekly drops in volume since June and “the weekly figures are not so good”. Due to current economic conditions, he added that a “global recession” could be imminent.