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FedEx To Begin Sunday Deliveries

March 7, 1998

MEMPHIS, Tenn. (AP) _ Federal Express begins Sunday package deliveries this weekend, reflecting a trend toward seven-day-a-week work weeks in America.

Sunday deliveries will begin in 50 of the largest U.S. cities with an eye toward expansion.

``Our customers have asked us to do this,″ said David Shoenfeld, FedEx vice president for marketing.

The Sunday deliveries, for overnight express, are primarily aimed at business customers. There is a $20 surcharge and arrival is guaranteed by 3 p.m. The shipments will be covered by the company’s standard money-back guarantee and its 24-hour package tracking system.

Art Hatfield, a market analyst with Morgan Keegan & Co., said FedEx already has the airplanes, trucks and other equipment needed to handle the new deliveries.

``There’s no capital to be invested in doing something like this. All you’re going to have is the variable cost of people working on those days,″ Hatfield said.

``I don’t think there’s a lot of risk in doing something like this. If it doesn’t work out, they can easily back off.″

Schoenfeld said FedEx has changed schedules for package sorting and flights to accommodate the extra day of delivery.

FedEx expects Sunday deliveries to attract companies working seven days a week as well as those needing supplies or equipment in place to begin the work week on Monday.

``Our customers tell us this is a service they need ... That’s a good thing for us and a much tougher thing for our competitors,″ Shoenfeld said.

``At present, we’re the only air express company that’s doing this on a regular basis, though certainly there are some specialized and pricey courier services that can do it.″

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