Subsiding pandemic fears are also driving a departure from e-commerce and a return to in-person shopping.Įven with the pullback on new warehouse plans, Amazon boasts a fulfillment footprint no other company can rival.
Many point to inflation as the main culprit - with less disposable income, shoppers are trying to save by spending less online, putting their money into things like travel and fuel. The slowdown can be attributed to a few different factors. That hasn’t happened since the pandemic began, and it marked the first year-over-year (y/y) decline in online spending since 2013. In March, e-commerce sales declined from the same period last year while in-person sales rose, according to Mastercard SpendingPulse. But e-commerce sales as a percentage of total retail sales actually declined slightly on an adjusted quarter-over-quarter (q/q) basis. Census Bureau, American retail e-commerce sales in Q1 2022 grew 2.4%, adjusted for seasonal variation, compared to the final quarter of 2021. What it all meansĮvidently, demand came in near the lower end of Amazon’s outlook.Īccording to the U.S. Amazon did not immediately confirm any delays or closures with Modern Shipper. Note: All information derived from local news sources. Out of service as of June 12, scheduled to open in 2021 Space to be sub-leased originally planned as last-mile distribution hub Note again that many of the build decisions were made 18 to 24 months ago, so there are limitations on what we can adjust midyear.”īelow are the 16 planned warehouses Amazon has canceled or delayed in 2022: Location “So, we’ve brought down our build expectations. “We currently have some excess capacity in the network that we need to grow into,” Olsavsky told investors on Amazon’s Q1 2022 earnings call. That includes $6 billion in added costs - the bulk of which can be traced back to that same fulfillment network.Īmazon ( NASDAQ: AMZN) CFO Brian Olsavsky said the company chose to expand its warehouse network based on “the high end of a very volatile demand outlook.” So far this year, though, it has shut down or delayed plans for at least 16 scheduled facilities. In the first quarter of 2022, the e-commerce giant reported a $3.8 billion net loss after raking in an $8.1 billion profit in Q1 2021. it’s messed up that people had to lose their lives while they were at work.”Īt least 45 Amazon employees made it out safely.After spending billions doubling the size of its fulfillment network during the pandemic, Amazon finds itself in a perilous position. "I just saw the roof completely tilted up. I saw the storm and was trying to get in as quickly as possible," said Brady Robison, 22, an Amazon van driver who works at the facility. “It was crazy – I was on my way into the warehouse from Pontoon Beach (Illinois) when it happened. The remains of the destroyed warehouse were mostly dismantled, reduced to rubble. The site, a compound comprised of a few buildings, has been under heavy private and police security through the weekend, accessible only to relief teams and some Amazon and government officials. The delivery station opened in July 2020 to prepare orders for last-mile delivery to customers. The company has three facilities in Edwardsville: the delivery station hit by the storm, as well as a fulfillment center and a sorting station. Amazon said there was no policy preventing employees or contractors from having phones at work.Įdwardsville, a city of 27,000, is about 18 miles northeast of St. Some of the workers told Reuters they had mobile phones with them despite what they believed was an Amazon policy preventing them from having the phones in their possession while at work.
At least one worker died there, according to his co-worker.Īmazon said employees were directed to shelter in place at a designated assembly area at the front of the building, which was near a restroom. Several employees told Reuters over the weekend that workers had been directed by Amazon managers to shelter in bathrooms after receiving emergency alerts on mobile phones from authorities.
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