Amazon has leased two distribution warehouses in the UK previously used by Tesco fuelling rumours that it might launch its grocery delivery service Amazon Fresh in the country soon and also opened its first fulfilment centre in Illinois, USA.
In the UK, Amazon leased two warehouses with a total area of 52,212 sqm from Logicor, a leading owner and operator of modern logistics facilities in Europe. The warehouses, which will be leased for ten years, are located in Bardon, Leicestershire, and in Weybridge, Surrey. While the Bardon facility is leased with immediate effect, the Weybridge lease will start in September 2015 once property refurbishment works complete.
Amazon will incorporate both logistics warehouses into its expanding UK distribution network.
Charlie Howard, Managing Director Logicor, UK, said: “We are delighted to support Amazon’s expansion of their UK distribution network. Both Bardon and Weybridge provide excellent strategic access to a high proportion of the UK population. These leases also strengthen our existing relationship with Amazon in the UK and Europe.”
The lease fuelled media speculation that the company soon plans a UK launch of Amazon Fresh, which is so far only available in the US (Seattle, California and New York). The speculation has been boosted by the fact that the site in Weybridge, Surrey, used to be a Tesco distribution centre and is ideally positioned inside the M25 highway to deliver fresh food to London shoppers.
The launch would take on Britain’s supermarkets, putting further pressure on them with the ongoing decline in sales and profits, and compete with Ocado, the country’s leading online grocer. Amazon reportedly confirmed it was opening a delivery station in Weybridge but declined to comment whether this would form part of Amazon Fresh in the UK, calling the potential launch of a grocery service “rumour and speculation”.
In the USA, the company plans to open a 46,452 sqm fulfilment centre in the city of Joliet, Illinois, which is expected to create 1,000 full-time jobs when it opens. Amazon employees at the fulfilment centre will process smaller items, such as books, electronics and consumer goods.
“We are excited to create 1,000 great full-time jobs in Illinois with competitive wages and comprehensive benefits starting on day one,” Mike Roth, Amazon’s vice president of North America operations, said. “We are grateful for the support of local and state leadership in helping to bring Amazon to Illinois and we look forward to being an active member of the community.”
Amazon said the comprehensive benefits for its employees include health insurance, bonuses and a network of support to help ensure employees succeed. Hourly employees are also eligible for innovative programmes like Career Choice, where the company will pre-pay 95% of tuition for courses related to in-demand fields, regardless of whether the skills are relevant to a career at Amazon.
