Although FedEx long ago achieved its goal of becoming a household name, the integrated carrier is aggressively moving deeper into the retail market, which serves individuals and small business customers.

FedEx recently announced that it had purchased long-time partner Kinko's, the nationwide provider of copying, printing, and other business services. For the past 15 years, FedEx has staffed separately run booths or drop boxes in roughly 100 of Kinko's 1,100 outlets.

Company executives expect that increasing the number of staffed booths will significantly increase shipment volumes. "Our market analysis shows that locations that are staffed by a FedEx employee typically have up to 10 times as many packages shipped there than in an area with just a drop box," says Jess Bunn, manager of media relations for FedEx. With staffed locations, the company also can offer ground service to Kinko's customers, he says. At present, the company only offers FedEx Express service at those locations.

The acquisition of Kinko's is designed to bring the FedEx brand closer to small businesses and what Bunn refers to as "mobile professionals." "It's like their office away from home," he says. "They can avail themselves of the services at Kinko's, and shipping is one of those services. We see it being particularly attractive to small and medium-size businesses."

Because Kinko's operates around the clock, some have wondered whether FedEx would also offer 24-hour service at store locations. Bunn says that's under consideration. "I wouldn't rule it in or out right now. Certainly if it turned out that we thought there was some value there, we'd be likely to do it."

Some industry experts believe that the Kinko's purchase is also designed to keep pace with rival UPS and its Mailboxes Etc. outlets, which last year were rebranded as "The UPS Store." "One can't overlook that they are obviously very mindful of what UPS is doing with Mailboxes Etc.," says Satish Jindel of SJ Consulting in Pittsburgh, Pa. But this latest move will also help FedEx compete against its other rivals, Jindel adds. "This is a recognition of the changes in the industry. It's not just what UPS is doing, but also with Airborne now becoming part of DHL and going after those small customers Airborne didn't serve before. This is a recognition that [FedEx needs] to get a lock on the market with their strong brand name for those small customers before the other [companies] gain a huge leverage."