Amazon is reported to be looking at subletting some UK warehouses as it halts plans for growth.
The online retailer was previously aiming to open more warehouse space across the UK as it capitalises on online spending. Retail Gazette has reported that instead, Amazon is looking to sublet its UK warehouses as it halts growth plans following its worst annual loss on record. Many retailers Toy World spoke to in December and January reported their best Christmas trading ever, signalling consumers were moving away from shopping online, preferring to visit bricks and mortar locations instead.
The online retail giant says it has noticed a decline for online orders in recent months, and has lost around 30% of its value over the past year due to inflation concerns.
LinkedIn posts from the past year have suggested that one Amazon facility has been fitting out in Bracknell. The site is among those looking to offload.
Amazon is not expected to sublet warehouses it is currently using, but instead those which it had taken but had not moved into, The Telegraph reported.
The news comes after Amazon proposed closing fulfilment centres in Hemel Hempstead, Doncaster and Gourock, in the west of Scotland, a move which will affect around 1200 jobs.
An Amazon spokesperson said that all the workers affected by the cuts will be offered roles at other existing Amazon locations.