UPS is testing out the use of neighborhood stores as backup pick-up spots to improve service and lower its costs amid stiffening competition.

United Parcel Service thinks it has found the perfect tool to speed up package delivery, and in the process lower costs: neighborhood convenience and grocery stores.

UPS, the world’s largest package delivery service, is currently testing out a new service, called UPS Access Point, at 300 locations in Chicago and New York. The idea is to recruit local businesses with evening and weekend hours within a short distance of customers to serve as additional pick-up spots where UPS can leave a package when someone isn’t home to accept it, thereby lowering the number of failed delivery attempts.

The company is planning on rolling out the service, already available in Europe, to all major U.S. metro area next year, and in January, to its own network of 4,400 UPS stores.

With eye on rising competition, UPS taps new delivery tool: Other stores

How It Works
If you elected to have your parcel delivered to a UPS Access Point at the time of ordering your goods, you will receive a notification alert via email or SMS when the parcel has arrived and is ready for collection. You must present a recognised form of photo ID to collect your parcel.

In Certain Locations, Your Parcels May Be Directed to a UPS Access Point

Where available, after the first unsuccessful residential delivery attempt, UPS will deliver your parcel to a designated UPS Access Point location in your vicinity. If this happens, you will notice a sticker on the UPS InfoNotice indicating the address and collection times of the location where the parcel can be retrieved up to 10 calendar days later by showing your UPS InfoNotice or tracking number and ID.