The US based company, which opened in Australia in 1998, has stores throughout Melbourne and Sydney and aims to have all of its Australian operations closed by May 31 next year. Its continuing inability to make a profit in the face of strong local competition failed to impress the US management.
Rival copyshops pointed to its business model as the underlying reason for its failure. Those rivals claim a greater degree of sales hunger for themselves, as they are either independent owner operators or owner operated franchise chains such as Snap and Kwik Kopy, whereas all FedEx Kinkos stores were company owned.
Speaking from the US company spokesperson, Jenny Robertson says the decision was made following an extensive performance assessment, which found the Australian market to be unviable. She says, “We have been looking at our business performance for some time, looking for ways to save costs and focusing on our priorities. We found that the cost of operating in the Australian market outweighed the profit generated.”
Robertson continues that the company will be refocusing on its priority markets where it has a stronger presence such as China, Korea, Japan and Canada. She says the company will be working with suppliers to handles the Australian stores’ equipment.
Other international markets are also facing the axe with the company’s stores in Mexico, the Netherlands and possibly the UK to be shut down.
Robertson adds, “We are working with FedEx Express to see if they have openings for some of our Kinkos employees. It was a difficult decision and we are attempting to make the transition as smooth as possible for employees and customers.”
FedEx Kinkos found itself in the eye of a storm 15 months ago when some bright spark within the company persuaded Adobe to add a ‘Send to FedEx Kinko’ hyperlink in the new Acrobat print menu. Following a huge worldwide outcry, led by the powerful Printing Industries Association of America, Adobe took the link out six weeks later.
The company is a major player in the US copyshop market with more than 1200 stores. However just like coffee business Starbucks it found Australia did not produce the results it wanted.
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