We don't usually think that our daily tasks have major importance in the functioning of the economy. However, every small purchase or visit to a store can have an effect on the local market. Although it may seem insignificant, everything adds up.
The shipping chain UPS has surprised with a drastic measure: it will close around 200 locations in the United States. The announcement is part of a modernization plan that includes staff cuts and changes in its operational network. The decision will impact thousands of workers and the way customers access its services.
A change in consumption habits
In recent years, consumers have transformed their shopping routines. It is increasingly common for people to choose to purchase products and services online. This trend has directly affected many brick-and-mortar stores, which see their revenues decrease month after month.
The smaller businesses, specializing in products such as spare parts, decoration, or stationery, have been the first to feel the blow. Some have reduced their size to survive, but others haven't been able to avoid closure. This transformation in habits has also reached large companies like UPS, reveals The Street.
As demand for in-person services drops, large chains must adapt. UPS, which for years worked closely with Amazon, has cut its collaboration with the company and now faces the need to adjust its infrastructure. The reduction in shipments and the automation of processes have forced difficult measures.
UPS's plan for the coming years
UPS has announced that it plans to close up to 200 operational centers before 2028. In addition, the elimination of about 20,000 jobs is expected before the end of 2025. The decision is part of a strategy to make its logistics network more efficient and reduce costs in the face of the new market reality.
One of the first known cases is that of three company stores located in Pennsylvania, which will close their doors in the coming weeks. These are the locations at 62 Dallas Shopping Center in Dallas, 1330 Main Street in Dickson City, and 1114 Texas Palmyra Highway in Honesdale.
The person responsible for those franchises, Dave McQueen, wasn't able to sell them and has decided to end his activity. According to UPS representatives, the closure is due to the franchise contracts having come to an end and not being renewed.
Although these decisions aim to ensure the company's long-term sustainability, they also generate uncertainty among workers and customers. The business transformation process is underway and, with it, many of the physical stores that were once part of daily life are disappearing. UPS is taking a step toward the future, but not without leaving a mark on the present.