After an initial, small-scale rollout this spring, the companies say the program will be available at thousands of Walgreens locations later this year and chain-wide at nearly 8,000 Walgreens stores by the fall of 2018. That's the same number of UPS locations, between UPS stores and local business partners like pharmacies and 7-11s.

Terms of the deal were not disclosed. It could benefit both parties by increasing foot traffic at Walgreens and improving delivery options by FedEx, said Raj Subramaniam, executive vice president and chief marketing and communications officer for FedEx.

“Walgreens, with its strong focus on customer care, is the perfect retailer to help us continue to meet the growing demand for convenient, secure drop-off and pickup options, and our research has shown that customers rank pharmacies as a preferred location for accessing their e-commerce shipments,” Subramaniam said in a release. “This will substantially increase customer access to staffed locations and enhance convenient access to FedEx Ground and FedEx Express options.”

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