Amazon new warehouses: good news for everybody ?

Amazon is planning to open a new

200 000 sq.m warehouse by 2018. With more than 2 000 new jobs and a clear exemple of the growing impact of online retail, this seems like very good news for the logistics sector.

Yet, we do not expect every logistics investor to be a winner. On the contrary, it is notable that Amazon's massive new warehouse exemplifies the need of a totally new type of warehouse. The video at the end of this page shows the organization of an Amazon warehouse operated partly by drones and robots and the very high ceilings this organization implies.

Hence, many existing assets could become obsolete quickly as it is not possible to transform older warehouse into modern ones due to floor resistance constraints in particular. It is notable that this trend does not only retail on Amazon as, for example, Alibaba is said to be looking for warehouses in France for its Aliexpress business.

Another noticeable trend is the increasing demands for smaller warehouses in city centres. Amazon is seeking a total of 1,300 warehouse units across Europe. The American retail giant is looking for small distribution facilities near major cities, so they can function as last-mile centers that receive and store shipments prior to their final deliveries to customers nearby. If Amazon has these warehouse units across Europe, it can better serve members of its one-hour Prime Now delivery service. At the moment, Amazon has launched its Prime subscription service in the United Kingdom, France, Germany and Italy.

Just as investors in shopping centres, logistics investors will have to think twice before finalizing their investments.

Amazon's new warehouses' organization with drones and robots