A report from Reuters confirmed that Amazon will postpone its Spanish expansion until 2024. This includes the delay in construction of the new warehouses in the country.
The reason for this sudden postponement is the slowed-down income and the decrease of online consumers post-pandemic. El Confidential, a publication from Spain, has reported this as they cited unidentified sources inside the company.
At least 10 million square feet of space from Amazon were in the plans to sublet because of this same reason. Investors were shocked as growth of sales were slower than usual, which led the company to cost cutting such as postponement and delays of opening warehouses.
As Amazon stated in the email that has been sent to Reuters, the commitment of the company in the country will remain. They added, "In 2022, we have opened new logistics stations, Amazon Fresh hubs and a logistics centre in Spain." No added information was given regarding the postponement.
Other Postponements and Abandoned Projects
Aside from Spain, Amazon also abandoned other facilities in the United States that are currently in the works or in the middle of planning. A report from Benzinga stated that over 42 facilities will not be opening after its announcements.
Delayed openings for other warehouses were also reported as the constructions were either still unfinished or halted by the company. Hanover and Essex's Amazon delivery stations are currently in the works of shutting down where almost 300 employees will be affected.
