Amazon hasn’t decided on how much warehouse space it needs to shed but it’s expected to let go of at least 10 million square feet, and may even double or triple that amount. It was reported that excess capacity, together with productivity loss and inflation, cost the company $6 billion last quarter. Still the e-commerce giant is relatively cautious in how much space to sublet in anticipation of a potential rebound.
In 2023, Amazon increased the number of items delivered same day or overnight by nearly 70% year-over-year. The experience was so positive for customers that the online retail giant is planning to double the number of their same-day delivery facilities.
The Amazon facility could signal a trend toward putting distribution centers closer to the population centers in the east, rather than going for cheaper warehouse space in Miami-Dade’s western suburbs. CLICK ON THE HEADLINE FOR MORE