Amazon.com, Inc. (NASDAQ:AMZN) has decided to expand its North Texas operations hub at the Galleria, Dallas.
The lease agreement
The online retail giant has signed a lease agreement for five floors about 100,000 square feet in the Three Galleria Towers. The space had been lying vacant since FedEx shifted to Plano’s Legacy West. Amazon has its regional office in the neighboring Two Galleria Tower. It has occupies four floors in the tower since 2014. The additional space in Three Galleria Tower makes Amazon to occupy more than double the space within the Galleria Towers property.
The company keeps growing
The expansion process is understandable if the high growth rate of the online retail is something to go by. The company is already planing to open the third fulfillment center in North Texas. The ever growing distribution services are spread out all the way to Haslet, Dallas, Schertz and Fort Worth. Amazon also enjoys the benefit of central location. The Galleria is located the midpoint to all cities hence streamlined distribution operations.
The company also employs a huge number of employees. It has added about 150,000 workers in the last five years. By 2016 the number had grown to 180,000. Recently it reported that it would employ around 100,000 employees on a full time basis with full benefits within the next one and a half years. The new centre at Coppel is likely to employ about 1000 workers.
Views from the experts
Amazon’s growth is evident. The growing customer demands keep increasing by the day. Last year it returned 47.3% against the expected analysts projection of 41%. As it ventures into global market it must work hard to maintain its market share in the U.S. to be able to retain the most popularity position.
Experts state that Amazon need to invest more in technology, content as well as fulfillment. This is especially as it tries to penetrate the international markets. The high costs may affect the company’s returns in the short run but in the long run they will be worthwhile. Experts insist that this decision is very crucial for the company in the international markets with less penetration and higher potential for growth. It is listed in the NASDAQ stock platform under the code AMZN.