UPS Stores Sets Record

The franchised stores now number 3,771 and the company's rapid expansion has made it one of the fastest growing retailers in the country, Mathis says. Mail Boxes Etc., which is a UPS company, has seen "a tremendous spike in the number of inquiries from potential franchisees as well as a significant increase in applications from existing franchisees," Mathis says.

Although the UPS Stores are typically located in shopping centers and commercial complexes, many of the company's retail sites, which range from about 1,200 sf to 1,800 sf, are now being opened in what Mail Boxes Etc. calls "special-venue sites" that are designed to locate more of the company's stores closer to where customers live and work. UPS sees plenty of potential for growth, citing the prospect of opening at least some of its new stores in these special venue cites that it describes as in "previously under-served areas such as urban neighborhoods, Free Enterprise Zones, college campuses, convention centers and military bases." In the past year, for example, the company signed agreements to open locations in places as diverse as the Washington Heights area of New York City, the campus of Arizona State University, and the Flamingo Hotel and Convention Center in Las Vegas. In addition to its domestic expansion, Mail Boxes Etc. has also expanded globally through master license agreements in nearly 80 countries. Mail Boxes Etc. was established in 1980 and was acquired by UPS in 2001. The companies introduced the UPS Store brand in 2001 and rebranded many of the Mail Boxes Etc. stores with the new name.