The retail giant is opening 100 new distribution centers this month
As e-commerce continues to flourish, Amazon is growing.
The retail giant is opening 100 new distribution centers this month, according to Dave Clark, senior vice president of worldwide operations at Amazon.
These new centers represent the continuation of Amazon’s aggressive growth this year. So far, Amazon has already opened over 75 new fulfillment, sortation centers, regional air hubs and delivery stations in the U.S. and Canada.
Amazon is also hiring an additional 100,000 regular employment opportunities throughout the U.S. and Canada. Last week, it announced that it was adding 33,000 corporate and technology jobs. The roles offer a starting wage of at least $15 per hour, and in select cities, Amazon is offering sign-on bonuses up to $1,000 to new hires.
While companies like Target and Walmart have made strides in e-commerce, Amazon’s head start in building out its pure online delivery platform sets it apart from its competition, according to a report by CoStar Advisory Services.
Amazon’s headstart will likely translate into a long-term standing as the number one online platform, which makes it integral to the distribution asset class. With 180 million square feet of distribution facilities in the country, Amazon is far ahead of Walmart, which has around 140 million square feet and Target with less than 60 million square feet.
“Although Walmart plus Sam’s Club and Target have retail and distribution footprints 4.6 times and 1.5 times the size of Amazon’s respectively, Amazon is more efficient in its use of real estate,” says Juan Arias, senior consultant with CoStar Advisory Services. “In the U.S., Amazon earns around $600 in merchandise sales per retail and distribution square foot, 34% higher than Walmart and 120% higher than Target.”
As these big players expand in the warehouse space, they will continue to invest in automation. “You had to have a critical mass of product running through, and you had to be a pretty big company to afford those investments,” says Rich Thompson, international director, supply chain and logistics at JLL.
NKF’s chairman Thad Mallory points to companies like Amazon, Costco, Walmart, Lowes and Home Depot leading the way with automation.
“Those companies are going to double down their investment because they’re making money right now, they’re getting more market share, and they’re going to come out on the other side stronger,” Mallory says. “I don’t think they’re going to be afraid to make an additional investment.”
