Amazon to close and scrap plans for dozens of warehouses amid slowing sales growth: report

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This photo taken on July 4, 2022 shows the logo of Amazon, a major online retailer, displayed at the Amazon Amagasaki Fulfillment Center in Amagasaki, Hyogo Prefecture. (Photo by Kazuhiro NOGI/AFP) (Photo by KAZUHIRO NOGI/AFP via Getty Images)

Amazon reportedly scrapped plans to build dozens of warehouses across the United States amid slowing sales growth.

Consulting firm MWPVL says the online retail giant is closing or abandoning plans to open 42 facilities across the country totaling nearly 25 million square feet of usable space, Bloomberg reported.

The firm says Amazon has also delayed the opening of 21 other sites and canceled several European projects, mainly in Spain.

“Amazon is a dynamic company and we are constantly exploring new locations,” Amazon spokeswoman Maria Boschetti told Fox News Digital. “We evaluate a variety of factors when deciding where to develop future sites to better serve customers. We have dozens of fulfillment centers, sorting centers and delivery stations under construction and evolving around the world. common for us to explore multiple locations simultaneously and adjust schedules as needed across the network.

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The report comes after the announcement of the closure of two delivery stations in Maryland that employ more than 300 people.

Amazon posted its slowest growth rate in more than 20 years in July, but ultimately posted better-than-expected results, sending the stock up 12%, The New York Times reported.

“Despite continued inflationary pressures on fuel, power and transportation costs, we are making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our distribution network,” said Andy Jassy, ​​CEO of Amazon, in a statement to the Times.

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Amazon announced earlier this year that it would start subletting some warehouse space as the number of online purchases slowed.

Spokesperson Alisa Carroll this subletting allows the company to “release itself from the financial obligations linked to an existing building” which no longer meets its needs.

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According The Wall Street JournalAmazon plans to sublet at least 10 million square feet of warehouse capacity and is exploring options to end or renegotiate more of its leases.

The additional space includes facilities in New York, New Jersey, California and Georgia, Bloomberg News reported.

Fox News’ Landon Mion contributed to this report. Read the continuation of this story FOX Business.

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