Amazon Plans To Launch 1500 Small Warehouses In U.S. Suburbs

amazon sept17 lt

Amazon.com Inc. plans to open 1,000 small delivery hubs in cities and suburbs all over the U.S. aiming to bring products closer to customers, Bloomberg reported citing people familiar with the plans.

The tech giant, which is going through workforce expansion, will eventually increase the number of small hubs to about 1,500.

The decision is said to be in direct competition with retail giant Walmart, which operates around 4,756 stores throughout the country as of January 2020.

As per the report, the world's largest e-commerce company could not meet its two-day delivery pledge earlier this year amid a surge in demand for online shopping during the Covid-19 lockdown.

With a view to meet ever-increasing online demand as the pandemic situation is still worse, the company this week announced its plan to hire an additional 100,000 regular full-time and part-time employees throughout the U.S. and Canada, on top of the 33,000 Corporate and Technology jobs announced last week.

In March, following strong consumer demand amid the lockdown, the company had hired 175,000 temporary workers. In May, the company said it will convert 125,000 of them to permanent full-time employees starting June.

Amazon also said recently that it was opening 100 buildings across new fulfillment and sortation centers, delivery stations, and other sites this month alone. In 2020, the company has already opened over 75 new fulfillment, sortation centers, regional air hubs, and delivery stations in the U.S. and Canada.

This week, Amazon also launched Luxury Stores, offering established and emerging luxury fashion and beauty brands, for eligible U.S. Prime members. Over time, Luxury Stores will extend invitations to more shoppers.

Meanwhile, the competition between Amazon and Walmart is gaining momentum with the latter also launching a new membership program, Walmart+, similar to Amazon Prime.

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