Amazon holds off on new logistics warehouses in Spain

Ecommerce large Amazon will not be 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’s also cancelling or delaying the opening of latest fulfilment and logistics facilities in all of its markets.

Excessive prices for Amazon

Whereas the web market reached robust progress throughout the pandemic when brick-and-mortar shops closed, client demand has decreased this 12 months. The corporate needed to improve its warehouse community within the final couple of years, however that is now costing some huge cash. In line with Amazon, extra capability, misplaced productiveness and inflation price the corporate 5.6 billion euros in Q2 this 12 months.

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

Along with that, inflation in Spain has reached round 10.5 p.c and ecommerce in Spain is slowing down as nicely. Consequently, Amazon won’t 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 not less than 2024.

New logistics middle opened in July

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