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.
The Seattle-based retail giant, which was caught off guard during the pandemic when it couldn’t meet demand for basic items like toilet paper and milk, is stepping up its delivery capabilities with more hubs in cities and suburbs, 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 is $ 21 less than Amazons annual subscription price $ 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 metropolitan area, Amazon has purchased two former Fairway Market stores in New Jersey, but it is unclear what those spaces will be used for as Amazon did not disclose this information in court records in the case. of the Fairway bankruptcy.
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