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Business

Amazon closes, scraps plans for dozens of warehouses amid slowing sales growth: report




Amazon is reportedly scrapping plans to build dozens of warehouse facilities across the U.S. amid slowing sales growth.

Consulting firm MWPVL says the online retail giant is either closing or abandoning plans to open 42 facilities across the country, totaling nearly 25 million square feet of usable space, Bloomberg reported.

The firm says Amazon has also postponed the opening of 21[ads1] other locations and canceled several European projects, mainly in Spain.

“Amazon is a dynamic business, and we’re always exploring new places,” Amazon spokeswoman Maria Boschetti told Fox News Digital. “We weigh a number of factors when deciding where to develop future sites to best serve customers. We have dozens of fulfillment centers, sorting centers and delivery stations under construction and development around the world. It is common for us to explore multiple locations simultaneously and adjust schedules based on needs across the network.”

FTC WANTS MORE INFORMATION ON AMAZON’S ONE MEDICAL PURCHASE

Amazon closes, scraps plans for dozens of warehouses amid slowing sales growth: report

Amazon stores with packages and company logo (Getty Images/Getty Images)

The report comes after it was announced that the company is closing two delivery stations in Maryland that employ more than 300 people.

Amazon posted its slowest growth in more than 20 years in July, but ultimately posted better-than-expected results, sending its stock up 12%, the New York Times reported.

“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, notably improving the productivity of our fulfillment network,” Andy Jassy, ‚Äč‚ÄčAmazon’s chief executive, said in a statement at the time.

Outside the Amazon building

Amazon will launch a merchant warehousing service called Amazon Warehousing & Distribution (AWD) in an effort to alleviate supply chain issues. (REUTERS/Gonzalo Fuentes/Reuters Images)

AMAZON SIGNALS GREEN HYDROGEN PLUG POWER SUPPLY

Amazon announced earlier this year that it would begin subleasing some warehouse space as the number of online stores has declined.

Spokeswoman Alisa Carroll said sublease allows the company to “release the financial obligations associated with an existing building” that no longer meets its needs.

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Amazon stock

A truck arrives at the Amazon warehouse in the Staten Island borough of New York, April 1, 2022. Amazon is barring warehouse workers from the company’s facilities, which organizers say could prevent unionization. (AP Photo/Eduardo Munoz Alvarez, File/Associated Press)

In accordance The Wall Street JournalAmazon plans to sublease at least 10 million square feet of warehouse capacity and is looking at options to terminate or renegotiate several of its leases.

The additional space includes facilities in New York, New Jersey, California and Georgia, Bloomberg News reported.

Fox News’ Landon Mion contributed to this report



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