The U P S Store Plans More Locations On Military Bases

Saturday, November 19, 2011

Are Military Bases a Hotbed for Business?

When U.S. troops need Proactiv acne treatment while living on a military base, they can get it through a vending machine. When Air Force pilots want a coffee at Dunkin' Donuts(DD_) or to buy a videogame at Game Stop(GME_), stores are on base for them to shop.

More from Laurie Kulikowski 3 Things You Should Know About Small Business: Nov. 23 How 5 Caterers Got Happily 'Into the Weeds' 3 Things You Should Know About Small Business: Nov. 22 Market Activity GameStop Corp| GME DOWN E.I. du Pont de Nemours & Company| DD DOWN United Parcel Service Inc (UPS)| UPS DOWN Military installations are a small yet growing avenue for businesses to expand. And, some say, a perfect avenue for a budding business to garner customers in a controlled environment.

Military installations are a small yet growing avenue for businesses to expand.

There is an increasing push by the government to "provide more convenient and higher-quality service on military bases for their service members," says Chris Adkins, vice president of franchise development for The UPS Store, a subsidiary of UPS(UPS_). "The military is very open to outsourcing as a way to provide these services." The sentiment fits well with UPS' store expansion plans in nontraditional locations, including hotels, convention centers and college campuses. The company has more than 4,700 retail locations in the U.S. and Canada -- 34 on military bases. Three more UPS locations are set to open on base by the end of the year. Adkins says that on average, the company opens five to six stores per year on military bases.

UPS is one of several franchisors looking to incentivize veterans to open stores.

"Our goal is to be where our customers need us, and U.S. service members and their families require our services," Adkins says. "We have a proven concept that has worked on many bases, so we are a known entity within the military retail supply organizations." The UPS Store also plans to approach individual Marine and Navy installations to provide similar services, he says.

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