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Non-Tech : FedEx (FDX)

FDX 255.03

+0.4%

10:57 AM EST

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To: White Shoes who wrote (126)	8/10/1998 12:01:00 PM
From: Toby Zidle	Read Replies (3) of 524

A stray thought on Net Grocer shipping their products by Fedex: Grocery store margins are about the thinnest of all retail. Shoppers are looking for the best prices and those willing to pay gourmet or boutique prices are indeed few. Who is going to pay standard Fedex rates to get the groceries out? The shopper? Doubtful - minimal customer base in that event. Net Grocer? With low margins, they can't take the loss. Fedex? By reducing rates to get this business? If so, the news isn't particularly good for the shareholders if profit margins fall with this strategy. Give me some reasons why the announcement was really important.

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