E-commerce juggernaut Amazon is building a vast new warehouse in Plymouth as it emerges the retail brand is now the world’s most valuable – worth a cool US$200billion.
The company, which has now overtaken Japan’s 7-Eleven in terms of worth, has started construction of a new Plymouth “delivery station” which is due to open in 2020.
New canopies have been constructed at the site of the 6,000sq m warehouse in Thornbury Road, Estover, in the north of the city.
Construction teams are beavering away on site, but the land is fenced off to protect workers from potential coronavirus infection.
The delivery station was due to be open in the spring of 2020, but has been delayed during the coronavirus pandemic. But construction is now in full swing.
Work at building sites is permitted despite the continuing lockdown, though industry chiefs have asked the Government to make this clearer as there has been a backlash from the public.
Housing secretary Robert Jenrick has said he wanted to see more building sites open, even though the lockdown is ongoing, but said construction firms must follow health protocols.
At the new Amazon site in Plymouth, a sign on fencing has the logo of ISG Plc, the London-based global construction specialist which built Amazon’s 2,200,000sq ft warehouse in Bristol in 2017.
The new Plymouth facility will replace the firm’s current operation in Broadley Park Road, Roborough, which opened in mid-2019 as a temporary facility while Amazon scouted for a permanent base.
Kerry-Anne Lawlor, country director for Amazon Logistics, said: "We are excited to open a delivery station in Plymouth where Amazon's 20-plus years of operational expertise, technology advancements and investment in transportation infrastructure is enabling faster delivery for customers than ever before, seven days a week."
The Seattle-headquartered e-commerce heavyweight has been revealed at top of the pile in the new Brand Finance Retail 50 rankings for 2020.
The company has seen 18% growth from US$187.9billion in 2019, to hit a brand value of US$220.8billion, substantially ahead of second-placed, Walmart, with a brand value at US$77.5billion.
The majority of Amazon’s revenue derives from its retail division and while most brands are experiencing or expecting a slump in revenue during the Covid-19 pandemic, Amazon is set for even more growth.
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As with fellow e-commerce brands, Amazon has been benefiting from a surge in demand as consumers turn online following store closures.
However, Amazon’s logistics and supply chain network is being stretched and its next day delivery service is being tested.
Richard Haigh, managing director at Brand Finance, said: “Amazon’s sheer dominance in the e-commerce space should stand them in good stead in the coming months as the world tackles the far-reaching repercussions of the Covid-19 pandemic.
“Brand Finance has calculated Amazon’s brand value could grow a further US$4billion thanks to the spike in demand. Nevertheless, the world’s online marketplace must look beyond the coming months to ensure that quality and speed are not compromised should it wish to maintain its exceptional reputation and thus retain new users."
