! Spanish News Today – Amazon halts expansion in Spain as online shopping market bottom falls

Publication date: 09/21/2022

The logistics giant will halt the expansion of its warehouses in Spain until at least 2024

Amid high economic uncertainty and steadily rising inflation rates, online retail giant Amazon has called for the construction of any new logistics warehouses in Spain to be suspended until 2024, issuing an ominous order to ” wait and see” to its local teams.

The growth of the online sales market during the pandemic catapulted Amazon to the world’s No. 1 in logistics, but a change in consumer behavior led Jeff Bezos’ company to report its first quarterly losses in seven years in May.

As a result, work will cease in the warehouses under construction in Reus (Tarragona), Girona, Vitoria and Seville, Murcia, Zaragoza, Vitoria, San Sebastian and Asturias, leaving around 150,000 square meters of land in Spain unused.

Despite the explosive announcement, Amazon reaffirmed its commitment to Spain, promising to “continue on the path to fulfilling our promise to have 25,000 permanent employees in the country by 2025. We will end 2022 with more than 20,000 permanent employees, after having created 2,000 jobs”. This year.”

“In 2022, we opened new logistics stations, Amazon Fresh hubs and a logistics center (in Spain),” the company said in a statement.

Most recently, the retailer launched a 130,000 square meter storage and management facility in Onda in July.

Despite the commitment of the multinational, the current economic situation in Spain does not bode well. Rising inflation has jeopardized Amazon’s low-margin model, a situation that could force it to raise prices to avoid huge losses. The flip side is that price increases will almost certainly discourage potential buyers, who are already suffering from inflated costs across the board.

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