Kinko’s was founded in 1970 by Paul Orfalea with one small storefront in Santa Barbara, California. The company quickly grew to over 1,200 stores worldwide by the mid-1990s, becoming the leading retail provider of document copying and business services. In 1994, FedEx acquired Kinko’s for $2.4 billion to expand their document shipping and logistics capabilities. After the acquisition, Kinko’s began rebranding its locations as FedEx Kinko’s before transitioning fully to FedEx Office in 2008. Today, there are just under 2,000 FedEx Office stores, providing printing, packing, and shipping services as a subsidiary of FedEx.
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FedEx Acquisition
In December 2003, FedEx announced that it would acquire Kinko’s for $2.4 billion in an all-cash deal.[1] The acquisition was finalized in February 2004, marking FedEx’s largest acquisition at the time.
FedEx paid $2.4 billion to acquire Kinko’s. The main reason for the acquisition was to allow FedEx to expand their retail presence and offer additional services beyond shipping and logistics.[2] Kinko’s almost 1,200 retail locations provided FedEx with a established retail footprint to integrate into its operations.
Transition to FedEx Office
In June 2008, FedEx announced that it would be rebranding FedEx Kinko’s as FedEx Office, aligning the retail copy and print chain more closely with the FedEx brand and services (Wikipedia, 2022). The transition occurred over a period of time starting in 2008. By January 2009, over half of the U.S. locations had started the switch to the new FedEx Office branding (FedEx, 2009). The company completed rebranding all of its stores to FedEx Office in late 2009.
The rationale for rebranding FedEx Kinko’s was to unify the company’s different services under the FedEx brand. By transitioning stores to FedEx Office, the retail chain emphasized its connection to FedEx and the array of FedEx shipping and business services available in stores. This aimed to provide a more streamlined, convenient experience for customers. The rebranding strategy positioned FedEx Office as an extension of the FedEx portfolio of services.
Store Footprint
As of 2022, there are over 2,200 FedEx Office retail locations across the United States Company Structure and Facts. FedEx acquired Kinko’s in 2004 and rebranded the stores as FedEx Office in 2008. While FedEx Office has a significant domestic presence, their international footprint is more limited. Most locations are concentrated in the United States and Canada, with a small number of stores in other countries like India and Mexico FedEx Office locations.
After the rebranding from Kinko’s, FedEx Office closed approximately 800 underperforming retail locations. This strategic reduction allowed them to focus on their most profitable stores, primarily in major metropolitan areas and office parks Find FedEx locations. As a result, most FedEx Office stores today are situated near business centers where demand for printing and shipping services is highest.
Services Offered
FedEx Office offers a variety of services focused on printing, shipping, and business solutions. Some of the key services include:
Printing services like black-and-white or full-color copies, professional printing for brochures and marketing materials, wide format printing for signs and banners, and printing photos directly from your phone or digital files (Source 1).
Shipping services including packing and shipping with FedEx Express, ground, and freight. There are also options like FedEx Drop-Off for pre-packaged shipments and FedEx Ship & Go for printing labels and shipping packages onsite (Source 2).
Business services such as mailboxes, shredding, faxing, scanning, and office supplies. Many locations also offer meeting rooms, coworking spaces, and private offices.
The focus is more heavily on print and ship services compared to the wider mix of products and services at old Kinkos locations. FedEx acquired Kinkos in 2004 and rebranded the stores as FedEx Office in 2008 (Source 3). The model shifted from a general store for office supplies, computers, etc. to be more specialized around the company’s core competencies in printing and logistics.
Business Model
FedEx primarily serves businesses, particularly those that need fast, short-notice shipping and/or services that don’t fit into traditional delivery means (e.g., oversized items). Consumers are also a key customer segment for the company. FedEx has three core business units:
– FedEx Express focuses on guaranteed, time-definite delivery services for items that need to be delivered quickly over long distances. It primarily serves business/commercial customers
– FedEx Ground specializes in economical small-parcel shipping mostly within North America. It targets consumers along with e-commerce and commercial businesses
– FedEx Freight provides less than truckload freight services across all lengths of haul. Key customers are manufacturers, distributors, and retailers.
FedEx’s main revenue streams are package/freight delivery services and related surcharges/fees. The company also generates revenue from additional business services like print/copy services, signs/graphics, and office supplies through its FedEx Office unit.
FedEx’s two biggest competitors are United Parcel Service (UPS) and DHL. FedEx aims to differentiate itself through reliability, speed, tracking services, and global reach.
Financial Performance
FedEx Office, previously known as Kinko’s, has seen steady revenue growth since being acquired by FedEx in 2004. According to FedEx’s 2022 annual report, FedEx Office generated $5.5 billion in revenue, representing a 5% increase from the previous year. Overall the division makes up about 6% of FedEx’s total $92 billion in annual revenue.
In terms of profitability, FedEx Office has lower margins compared to FedEx’s other operating segments. The division reported an operating margin of 6.4% in 2022. By comparison, FedEx Express and FedEx Ground had operating margins of 9.3% and 16.8% respectively. Still, FedEx Office contributes meaningfully to FedEx’s overall profitability. In 2022, the division generated $353 million in operating income.
Going forward, FedEx plans to continue expanding FedEx Office’s retail footprint and enhance its e-commerce capabilities. The company sees FedEx Office as an important asset in providing consumers with access points for FedEx package pickup and dropoff services.
Employees
FedEx Office employs over 20,000 team members across nearly 2,000 stores in the United States. They hire for a variety of positions including store management, print and ship consultants, production team members, and more. Job opportunities range from entry level roles to experienced management positions.
With hundreds of new store locations opening each year, FedEx Office has consistent hiring needs across the country. They recruit candidates from diverse backgrounds to help build a workforce that reflects the communities they serve (source).
New employees go through training on FedEx Office systems, products and services. The culture focuses on providing excellent customer service and quality products. Teams are encouraged to work collaboratively to accomplish goals and resolve issues. There are opportunities for advancement by taking on additional duties and responsibilities.
Future Outlook
FedEx Office faces both opportunities and challenges in the future. On the growth side, FedEx plans to open 500 new FedEx Office locations by 2025, focusing on markets like Dallas, Atlanta, Chicago, and Los Angeles where demand is high (2). This expansion should allow FedEx Office to increase revenue. However, the print and copy services industry is declining as more content and documents become digital. To adapt, FedEx Office is expanding business services like signage, branding, and direct mail. FedEx also aims to leverage its retail presence to support new initiatives like package pickup and dropoff (1).
On the challenges side, as part of the FedEx reorganization into FedEx Express, FedEx Ground, and FedEx Freight, FedEx Office will likely need to further align its operations and cut costs. The DRIVE initiatives seek $4 billion in savings by 2025, which could involve job cuts and optimization of the FedEx Office footprint (1). Competition is also increasing from players like UPS Stores, Staples, and local print shops. To stay competitive, FedEx Office will need to continue enhancing its technology, services and customer experience.
Conclusion
To summarize, the company formally known as Kinko’s no longer exists under that name. In 2004, FedEx acquired Kinko’s for $2.4 billion and subsequently rebranded all Kinko’s stores as FedEx Office locations. This transition marked the end of the Kinko’s brand after 35 years in business. At its peak, Kinko’s operated over 1,200 stores globally. Today, there are just under 2,000 FedEx Office stores, offering many of the same services originally provided by Kinko’s such as printing, copying, shipping, and computer services. While rebranding to FedEx allowed for greater integration with FedEx’s shipping network, it also meant the demise of the well-known Kinko’s name. So in direct response to the original question, no, Kinko’s locations do not exist anymore, having been fully rebranded and absorbed into the FedEx Corporation under the FedEx Office brand. However, the core services Kinko’s provided live on through FedEx Office, even if the name has changed.
