DHL ends its partnership with the American drugstore

Filed in archive Partnerships on October 29, 2008

According to a news release by Logistics Management Magazine, DHL and Walgreens, the drugstore chain, have ended their partnership in SCM area only after nine months.

It was first in January that it was announced that two companies have entered into an agreement, with the goal of increasing the number of Walgreens retail locations offering DHL Express shipping services to more than 6,500 locations by the end of this year. At the time, DHL said that this movement was in line with the company's retail strategy.

It seems that the new financial difficulties of the company, especially in the U.S. have led to such decision. Earlier this year the company fired hundreds of its shippers and also the company is no longer allowing shippers to create domestic accounts with DHL Express USA, which has been in effect since September 21.

DHL has made a number of restructuring efforts including an arrangement with UPS in which UPS will provide airlift for DHL Express U.S. domestic and international shipments from airport-to-airport within North America; but it takes time to see whether the company is going back to its original ambitious plans in the retail space or not.