E-commerce giant Amazon plans to cancel and delay the opening of 49 warehouses, totaling about 50 million square feet, across the United States.according to a report by Commercial Observer, a real estate trading media platform.
Amazon’s line of adding what appears to be an infinite amount of storage may have stopped.
Amazon’s online store sales in the second quarter fell 4% compared to 2021marking the third consecutive quarter of decline in this measure.
Amazon is even closing some existing buildings, such as its two delivery stations next month in Hanover and Essex, near Baltimore, which employ more than 300 people. Delivery stations are facilities where, as part of the Delivery Partner Program, Amazon drivers pick up items for their routes each day.
Of the cancellations, nine fall in California. However, the company is moving forward with a lease of 4.1 million square feetwhich will be its largest depot in the country, located in the Inland Empire of Southern California.
“Amazon has been flying high during the pandemic, driving a spike in online shopping. This has led to an incredible wave of hundreds of millions of square feet of rental and openings across the country. The company opened 100 warehouses in September 2020 alone, and in 2021 Amazon leases 115 million square feet worldwide.
In fact, MWPVL data indicates that the e-commerce giant owns or leases approximately 1,200 US facilities, with an area of 376 million square feetAnother 110 million square feet will be added.
“But since 2020, many traditional stores have reopened, and now consumers are dealing with record inflation, forcing them to cut back on online shopping. After the second quarter, Amazon posted its slowest growth rate in 20 years amid a new, chaotic economy.”
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