At-home shopping leaps, driving UPS, Fedex demand

Discussion in 'The Latest UPS Headlines' started by cheryl, May 12, 2011.

  1. cheryl

    cheryl I started this. Staff Member

    At-home shopping leaps, driving UPS, Fedex demand - Reuters

    Costly fuel and harsh weather are leading more people to shop from home this year -- good news for FedEx (FDX.N) and United Parcel Service (UPS.N) as online sales jumped by double digits in the first quarter.

    "It is a big deal. It's a growing portion of the business," for UPS and FedEx, said Jason Seidl, Dahlman Rose & Co. transportation analyst. "They've made sure that they can integrate themselves into a global e-commerce supply chain."

    E-commerce "continues to be one of the long-term growth drivers in our industry," UPS Chief Financial Officer Kurt Kuehn said in an interview after the company released first-quarter results.