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Amazon to close, scrap plans for dozens of warehouses amid slowing sales growth: report

By Andrew Miller
FOX Business
Business
Published September 3, 2022 5:40 PM MST
Published September 3, 2022 5:40 PM MST
JAPAN-TECHNOLOGY-AMAZON article

This picture taken on July 4, 2022 shows the logo of Amazon, a major online shopping company, displayed at Amazon Amagasaki Fulfillent Center in Amagasaki, Hyogo prefecture. (Photo by Kazuhiro NOGI / AFP) (Photo by KAZUHIRO NOGI/AFP via Getty Images)

Amazon is reportedly scrapping plans to build dozens of warehouse facilities across the United States amid slowed sales growth.

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

The firm says that Amazon has also delayed opening 21 other locations and canceled several European projects, mostly in Spain.

"Amazon is a dynamic business and we are constantly exploring new locations," Amazon spokesperson Maria Boschetti told Fox News Digital. "We weigh a variety of factors when deciding where to develop future sites to best serve customers. We have dozens of fulfillment centers, sortation centers and delivery stations under construction and evolving around the world. It’s common for us to explore multiple locations simultaneously and adjust timetables based on needs across the network."

FTC WANTS MORE INFORMATION ON AMAZON'S ONE MEDICAL PURCHASE

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

Amazon posted its slowest growth rate in more than 20 years in July but ultimately posted better results than expected which caused the stock to jump 12%, the New York Times reported.

"Despite continued inflationary pressures in fuel, energy and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network," Andy Jassy, Amazon’s chief executive, said in a statement at the time.

AMAZON SIGNS GREEN HYDROGEN SUPPLY DEAL WITH PLUG POWER

Amazon announced earlier this year that it would begin subleasing some warehouse space as online shopping numbers have been slowing down.

Spokeswoman Alisa Carroll said subleasing allows the company to "relieve the financial obligations associated with an existing building" that no longer meets its needs.

CLICK HERE TO READ MORE ON FOX BUSINESS

According to The Wall Street Journal, Amazon plans to sublease at least 10 million square feet of warehouse capacity and is looking at options to end or renegotiate more of its leases. 

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

Fox News' Landon Mion contributed to this report. Read more of this story FOX Business. 

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