Page 78 - Entrepreneur - USA (January - February 2020)

THE FRANCHISE

The UPS Store

5

— — —
STARTED FRANCHISING 1980 TOTAL UNITS 5,166 COST TO OPEN $138.4K–$470K

THE UPS STORE can thank dissat- contract to ship hardware, such locations such as pharmacies,
isfied customers for its recent as cable boxes, back to utility supermarkets, hardware stores,
success—though, of course, companies when customers hotels, and military bases.
we’re not talking about its own are done using them. “We’re You’ll now find small-foot-
customers. “About a third of reducing the touch points in the print UPS Stores inside
online purchases are returned,” return process,” says Davis. major chains like Meijer (a
says Tim Davis, president of Tapping into predictable Midwestern supermarket) and and already, it’s begun putting
The UPS Store. “And that’s shipping helped drive a net Omni Hotels & Resorts, and all pressure on franchisees to stay
become a very attractive busi- gain of 104 UPS Stores in together, these new locations open seven days a week.
ness segment for us.” 2018. But that doesn’t fully account for some 26 percent of But the company’s biggest
To cash in on the returns of explain the company’s recent the company’s sales. change might be symbolic. This
dissatisfied e-commerce com- success. The other key lies in According to Davis, increas- year, in a stark revolt against
panies, UPS has signed deals to its efforts to meet custom- ing the company’s footprint is UPS’s traditionally brown PHOTOGR APHS COURTESY OF UPS
be the official return courier for ers where they already are. just one part of a bigger plan branding, many stores received
several major retailers. (Davis Over the past two years, new to serve more customers. Soon, splashes of blue, white, and yel-
won’t say exactly which ones.) UPS Stores have increasingly he says, UPS will begin experi- low as part of a new store con-
The UPS Store is also under opened in nontraditional menting with drone deliveries, cept test. —GORDY MEGROZ

$ 1.4M 53.6% 80%

Average revenue Merchandise margin Stores owned by
for stores. * for top quarter of multi-unit owners.
our stores. *

• Multiple revenue streams, including retail, B2B & eCommerce

• Marketplace leaders in speed, selection, service & expertise

Let’s talk. Learn more by calling 1-800-274-9155
or visit batteriesplusfranchise.com.

*Net revenue average of $1,394,889, average unit volume, and average merchandise margin is
based on the net sales average for the 158 stores that represent the top 25% of all 633 stores
open during the entire 2018 calendar year. See Item 19 of our 2019 FDD for further details.
© 2020 DURACELL, Bethel, CT 06801. Duracell is a registered trademark of
Duracell U.S. Operations, Inc., used under license. All rights reserved.