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Amazon Shutters San Francisco Fulfillment Center, Plans to Expand Nearby

Amazon Shutters San Francisco Fulfillment Center, Plans to Expand Nearby

Wednesday, May 8th, 2024

Amazon is looking toward expansion in the California market. As part of its strategy, the retailer is shuttering operations at one of its San Francisco fulfillment centers while pursuing other expansion opportunities in the market.

“We’re always evaluating our network to make sure it fits our business needs and to improve the experience for our employees, customers, partners, and drivers. As part of that effort, we may close older sites, enhance existing facilities, or open new sites, and we weigh a variety of factors when deciding where to develop future sites or maintain a presence,” an Amazon spokesperson said in a statement to the San Francisco Chronicle. “In this case, employees at our San Francisco fulfillment center are being offered transfers to other facilities nearby, or support if they choose not to stay with Amazon.”

Amazon is ceasing operations at one of its San Francisco fulfillment centers as it eyes other expansion opportunities in the marketAs the source reported, Amazon plans to shutter a small fulfillment center that it established as an UltraFastFresh site to deliver groceries at 888 Tennessee St. This follows another recent closing as the retailer shut down its 75,000-square-foot facility at 435 23rd St. just last year, with another one of its facilities in the Bayview district also slated for redevelopment.

However, Amazon is still accelerating the growth of its California footprint through several purchases in the past several years. This includes the chain’s $200 million acquisition of a six-acre site in San Francisco in 2020. Amazon plans to redevelop the space into a 650,000-square-foot logistics center and is currently seeking city approval for its redevelopment plan.

In addition, the grocery behemoth also picked up a shuttered 215,600-square-foot SkyPark warehouse at 1000 San Mateo Ave. in 2020 for a total of $96 million. This location is also earmarked for redevelopment into a parcel delivery station, according to the source. While Amazon has yet to break ground on the project, its spokesperson confirmed the plan still stands.

As this expansion strategy unfolds, follow along with us at DMN.