Amazon holds off on new logistics warehouses in Spain

Ecommerce large Amazon isn’t opening new logistics warehouses in Spain till 2024. The corporate was planning to construct on land of round 150,000 sq. meters within the nation, however is now pausing these plans. The pause is attributable to inflation and drop in client demand.

Amazon acquired mechatronics specialist Cloostermans in an effort to ramp up its robotics operations final month. Whereas the corporate is making investments, it is usually cancelling or delaying the opening of latest fulfilment and logistics facilities in all of its markets.

Excessive prices for Amazon

Whereas the net market reached sturdy development in the course of the pandemic when brick-and-mortar shops closed, client demand has decreased this yr. The corporate needed to improve its warehouse community within the final couple of years, however that is now costing some huge cash. In response to Amazon, extra capability, misplaced productiveness and inflation value the corporate 5.6 billion euros in Q2 this yr.

‘Amazon is delaying development of latest logistics facilities in Spain till 2024.’

Along with that, inflation in Spain has reached round 10.5 % and ecommerce in Spain is slowing down as nicely. Because of this, Amazon is not going to be launching new warehouses within the Spanish cities Murcia, Zaragoza, Vitoria, San Sebastián, Asturias, Vigo, Seville, Girona and Reus (Tarragona). For now, the launches are delayed till at the least 2024.

New logistics heart opened in July

The corporate at present already has 28 logistics facilities in Spain. In July, it opened a brand new heart in Onda with over 130,000 sq. meters of storage. It manages as much as 4 million items of huge merchandise. There aren’t any present plans to shut the present logistics facilities within the nation.

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