COMPETITION WATCH: DHL and Walgreens partner to provide shipping services in US

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PLANTATION, Fla. — DHL has entered into a strategic agreement with Walgreens, the largest largest drugstore chain in the US, which will more than double the number of retail outlets offering DHL Express shipping services nationally.

Walgreens is projected to expand to more than 6,500 locations by the end of 2008 with more than 1,600 stores open 24 hours a day.

The new agreement is designed to service shippers sending and dropping off their packages via DHL for overnight, ground or international delivery. The DHL Shipping Spot will be staffed by Walgreens associates at Walgreens photo counters to weigh, label and ship customer packages to U.S. or international destinations, creating a simple and easy shipping experience.

“DHL’s success partnering with a retailer to offer in-store shipping services has proven that American businesses and consumers want the convenience of shipping where they shop, and Walgreens is the perfect partner,” said Hans Hickler, CEO of DHL Express (USA). “Expanding DHL’s retail presence is an important next step in our U.S. retail strategy, as well as our small to mid-size business growth plans. The combination of shipping within the corner drugstore environment on a national basis is unprecedented and allows both DHL and Walgreens to provide even more convenience to customers in unparalleled ways.”

Walgreens customers will have access to DHL’s core express products and services. Shippers will benefit from the convenience of a DHL location “down the street” and “around the corner” that provides access to a global shipping network serving over 225 countries and territories.

“We’ve seen strong customer response to DHL in-store shipping in test markets,” said Walgreens Executive Vice President of Marketing George Riedl. “The service addresses an important need for our time-crunched customer base.”

By end of 2008, DHL will have more than doubled its retail presence with retail shipping locations, including Walgreens and OfficeMax locations, as well as thousands of independently owned and operated shipping centers that are part of the DHL Authorized Shipping Center network.

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