Amazon's move comes as FedEx said it won't renew a contract with the e-commerce giant. Amazon could save money in last mile delivery if it can deliver via its Counter program, which will compete with order online pick up in store programs from Best Buy, Target and Walmart to name a few. Counter also lands in time for Prime Day 2019.
According to the company, Counter uses technology from Amazon to be user friendly and move pickups quickly without in-store labor. Customers get a unique barcode with the address and business hours. Customers then have the barcode scanned in store and the package is retrieved by staff. Counter in the US follows a program launched in the UK and Italy.
For Rite Aid, a struggling pharmacy chain, the Amazon partnership could bolster foot traffic in stores. Rite Aid competes with much larger players such as Walgreens and CVS.