FedEx Kinko retail centers will be rebranded over the next several years to become FedEx Office, a name the company feels better describes “the wide range of services available…and takes full advantage of the FedEx brand.” Kinko operations have been undergoing a number of changes over the recent past in an effort to more closely conform to FedEx overall strategy and control costs.
Several of these moves included reducing the FedEx division’s senior management team and restructuring it. Additionally, there has been a slowing of the rate of expansion from an anticipated 300 locations in fiscal 2008 to 70 in fiscal 2009.
In mid-May Brian D. Philips was named president and CEO of the division. He had been acting CEO since March 31. In explaining the rebranding, he said, “Kinko's was primarily a copy and print-service provider when it was acquired in 2004. The name FedEx Office more accurately represents our broader role of providing superior information and services through our company-owned, digitally connected locations around the world. We are a back office for small businesses and a branch office for medium to large businesses and mobile professionals."
FedEx Office provides some $1 billion of revenue each year for FedEx Express and FedEx Ground. This company estimates the cost of the change at $891 million that will be taken as a one time, non-cash expense in this year’s fiscal fourth quarter.