Amazon abandons plans to open 42 US warehouses as sales slow

Amazon has also delayed the opening of 21 locations totaling 28 million square feet.

Photo: Michael M. Santiago/Getty Images

The drop in its sales levels has taken its toll on Amazon, not only in the setbacks that its actions have given, but also with the cancellation of 42 warehouses that it already had in its expansion plans.

The online sales giant has taken seriously the message from consumers, who have chosen to be more cautious with their budgets due to historical inflation that challenges your ability to pay for basic consumer goods.

In the midst of this slowdown, Amazon decides to step back in its race to expandabandoning dozens of warehouse projects that would have generated thousands of jobs.

The data was confirmed by the company specialized in real estate, MWPVL International Inc., which detailed that the 42 warehouses canceled equates to nearly 25 million square feet of usable space.

This measure is known after Amazon announced that it would rent its warehouses due to the drop in sales volumes.

But to the cancellations are added the delays that, according to MWPVL International Inc, Amazon also carries out at the opening of 21 locations which in total add up to about 28 million square feet.

Closures and cancellations not only affect the United States, but the company founded by Jeff Bezos has also canceled an undetermined number of warehouses announced in Europe, mainly in Spain.

In this context, the country is not far behind, since the company has already notified the administration in Maryland about its plans to close two delivery and distribution centers in the cities of Hanover and Essex, in the vicinity of Baltimore.

According to calculations, these scheduled warehouse closures will affect more than 300 employees.

“There are still some serious (Amazon) cuts to be made before the end of the year, in North America and the rest of the world,” Marc Wulfraat, founder and president of MWPVL, said in a Bloomberg post.

Amazon’s decisions contrast with the almost frenetic pace that the company had during the years of the pandemic, when looking for spaces to enable and open new distribution centers.

Even more remarkable is that not even the proximity of the Christmas season and the end of the yearwhen retail companies pick up their sales, has led him to reconsider his decision to close or cancel dozens of stores.

For her part, an Amazon spokeswoman, Maria Boschetti, explained that “the company is exploring several locations and that it is very likely that the adjustments will follow ”he said in a statement sent to Bloomberg.

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