Amazon’s new fulfillment center delayed

YCD has learned that Amazon’s new fulfillment center in Detroit was originally scheduled to open this year, but Amazon said it would delay that time until next year.
 
The new fulfillment center in Detroit, on the site of the former expo venue, was developed and built for Amazon by developers in Detroit and Dallas.
 
It is reported that the two real estate developers bought the land from the Detroit government for $16 million. However, Amazon said it did not receive any tax breaks or subsidies from local or state governments.
 
Construction on the 3.8-million-square-foot mega-building began in late 2020, and Amazon hoped to have the fulfillment center open by the middle of this year so that its operational efficiency could peak by the 2022 holiday season.

YCD found that the new fulfillment center had been built for several months, but Amazon said it had adjusted the timing of its opening.
 
Amazon spokesman Austin Stowe said that while the fulfillment center has begun “preliminary operations,” we now hope to “officially” use the fulfillment center by 2023.
 
The spokesman would not disclose the reason for the delay in using the fulfillment center, nor when the center would be officially opened next year, and remained tight-lipped about the specifics of “preliminary operations.”
 
“Considering that the project started during the pandemic, we are not concerned about its delay,” a Detroit official said Monday. “Amazon has made a huge investment and commitment to Detroit, and we look forward to the official opening of the center next year.”
 
Amazon’s sales growth has slowed this year, and it has delayed plans to open multiple new U.S. warehouses, even abandoning construction of some warehouses outright. A fulfillment center in Delta Township, Michigan, originally scheduled to open this year, has been delayed until 2024, while an Amazon fulfillment center in Gaines Township has been canceled outright.
 
On the other hand, Amazon said it still plans to set up a new express delivery station in the town of Pittsfield, Washtenaw County, although it has not given a specific launch date.

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