Amazon plans to open 1,500 small warehouses in US suburbs: report

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As Amazon seeks to supplement its real estate portfolio, it is not interested in the abandoned department store space, according to the report.

AFP via Getty Images

Amazon.com Inc. aims to open up to 1,500 small warehouses across the United States – many in suburbs – as it raises the stakes in its battle against Walmart, according to the report.

According to a Bloomberg report.

Amazon
AMZN,
-2,47%
Chief Executive Officer Jeff Bezos is investing billions in these new warehouses and improving the company’s transportation capabilities, Bloomberg said.

As demand for products online increased at the start of the pandemic, Amazon struggled to deliver on its two-day delivery promise to Prime members. But he has since hired 175,000 workers who have put the company back on track.

Walmart WMT,
-0,80%
and TGT target,
-0,72%
have also upped their game with same-day delivery through their extensive store network, with Walmart recently launching Walmart Plus, its response to Amazon Prime. Walmart Plus costs $ 21 less than Amazon’s annual subscription price of $ 119, but requires a minimum purchase of $ 35 for free shipping.

As Amazon seeks to supplement its real estate portfolio, it is not interested in the abandoned department store space, according to the report.

Distressed department stores that are shutting down sites, including JCPenney, are a “last resort option” for the Seattle-based giant, according to the report, which cites anonymous sources.

In the New York metro area, Amazon bought two former Fairway Market stores in New Jersey, but it’s unclear what those spaces will be used for because Amazon did not disclose this information during court filings in the case. of the Fairway bankruptcy.

This report was originally posted on NYPost.com.

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