Amazon To Close, Scrap Plans For Dozens Of Warehouse Amid Slowing Sales Growth

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Amazon has apparently stopped plans to build warehouses the United States because of slow sales growth.

Bloomberg reported that MWPVL (a consulting firm) said that Amazon is closing 42 of its stores in the country or has abandoned plans to do so. They cover almost 25,000,000 square feet.

According the firm, Amazon also delayed opening 21 more locations and cancelled several European project mainly in Spain.

This is a report that follows the closure of two Maryland delivery stations. These stations employ more than 300 people.

According to The New York Times, Amazon saw its slowest growth in more than 20 years in July. It eventually achieved better results than expected, which resulted in the stock jumping 12 %.

Amazon had earlier this year announced that it would sublease warehouse space to offset slowing sales online.

Alisa Carrick, spokesperson for the company stated that subleasing helps them “relieve financial commitments associated with an existing building that does not meet our needs”.

According the The Wall Street Journal, Amazon plans to sublease 10 million square feet of warehouse space. It is also exploring other options for terminating or renegotiating additional leases.

Bloomberg News reported the addition of facilities in New York City, New Jersey, and California.

The post Amazon To Close, Scrap Plans For Dozens Of Warehouse Amid Slowing Sales Growth appeared first on Conservative Research Group.

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