Staples (NASDAQ:SPLS) and RadioShack (NYSE:RSH) are getting out of the Amazon (NASDAQ:AMZN) Lockers business. Both retailers have removed Amazon's delivery lockers from their stores a year after agreeing to install them, Bloomberg reported.
Staples pulled the plug on what it called a test of the lockers because it "didn't meet the criteria we set up together," Staples president of North American store Demos Parneros told Bloomberg. He didn't say how many lockers had been installed. Staples has also been preparing a holiday price-matching promotion that mentions Amazon as a competitor by name, and is testing its own delivery lockers in its new, small-footprint "omnichannel" stores.
RadioShack ended the program because it doesn't fit with the electronics retailer's strategy, a RadioShack spokesperson said. In July, RadioShack opened several concept stores in New York, New Jersey and Texas in an effort to see how the chain can give itself a more upscale makeover and sell higher-margin products. In recent years RadioShack has depended largely on mobile phone sales, but for the past year the retailer has lost money.
Analysts said it was likely neither chain saw any uptick in actual shoppers due to the lockers. Amazon launched the program so that its customers would be able to pick up their Amazon purchases at local retail stores instead of having them delivered to homes or apartments, where packages might be stolen if the customer wasn't at home. Both Staples and RadioShack also compete directly with Amazon in the categories where they sell products.
However, Amazon's locker deal with 7-Eleven still appears to be intact. That would seem to be a better fit for the Amazon Lockers project, since 7-Eleven doesn't compete directly with Amazon. The convenience-store giant also has more U.S. stores than Staples and RadioShack combined, and customers stopping in to pick up a package are more likely to buy an impulse item from a C-store rather than office supplies or electronics.
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