Slowdown Bites Amazon; It Postpones Spanish Expansion Ambitions To 2024

Slowdown Bites Amazon; It Postpones Spanish Expansion Ambitions To 2024
  • Amazon.com Inc AMZN has suspended the construction of new warehouses in Spain until 2024.
  • Amazon told its providers and partners to "wait and see" as pandemic-driven online shopping has slowed down while acknowledging its commitment to Spain, Reuters reports citing news website El Confidencial.
  • "In 2022, we have opened new logistics stations, Amazon Fresh hubs, and a logistics center (in Spain)," Amazon said.
  • Earlier, Amazon shared plans to add 2,000 new jobs in Spain in 2022, taking its total payroll to 20,000.
  • Amazon abandoned many existing and planned facilities around the U.S. due to slow sales growth. 
  • Amazon decided not to open 42 facilities spread across 25 million square feet of usable space and delayed opening an additional 21 locations, making up about 28 million square feet. 
  • Amazon also planned to shut down delivery stations in Hanover and Essex, near Baltimore.
  • Amazon sought to sub-lease at least 10 million square feet of warehouse space.
  • Amazon said it expects-third quarter net sales to be in a range of $125 billion to $130 billion, up 13% to 17% year-over-year against the consensus of $126.4 billion.
  • Price Action: AMZN shares traded lower by 0.20% at $123.28 on the last check Monday.

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