The Wall Street Journal this morning reports that "Amazon. com Inc. is making room for big new warehouse projects even as the e-commerce giant reins in its aggressive logistics expansion.
"The e-commerce giant recently won local approval to build a five-story, 3.1 million-square-foot distribution center in western New York, and has even bigger sites in the works in Southern California and Colorado as it bolsters a network aimed at getting more goods faster to more Americans.
"The projects signal that the sprawling warehouses that anchor Amazon’s U.S. logistics network still have a place in the company’s strategy following its announcement in May that it was slowing the build-out of its logistics network and planned to sublease some existing space following its slowest quarterly revenue growth in about two decades."
The story ;points out that "Amazon has canceled some warehouse projects and delayed others, but experts say the big projects moving forward suggest the pause in logistics expansion is targeted at specific types of facilities and that the broader efforts to build up capabilities are still under way … Amazon so far this year has canceled, closed, listed for sublease or put on hold more than 25 delivery stations and fulfillment centers across the U.S. and has delayed opening 15 more, according to MWPVL data.
"At the same time, Amazon is expected to open some 250 more facilities in 2022."
- KC's View:
It isn't just warehouses about which Amazon is being selective about where to grow and where to cut. Last week, it said that it currently is adding jobs at the slowest rate in several years, and in Q2 had 100,000 fewer employees than it did during Q1.
But I suspect that these numbers all are subject to change, depending on what next big thing Amazon introduces. Companies like Amazon have to grow, which is why it is working to acquire One Medical and always is seeking out opportunities to disrupt industries and steal market share.