Amazon seems to have gotten the hint from analysts’ warnings that the e-commerce giant will need to bolster its fresh food distribution resources. The company has announced it will open a more than 100,000-square-foot warehouse space in Houston, Texas, under its AmazonFresh branch.
In a new report from Realty News Report, the source revealed AmazonFresh has selected Fallbrook Pines Business Park in northwest Houston as the site for the new facility. The source notes the new building will likely enforce Amazon’s fresh food delivery capabilities throughout the city.
At the end of last month, Deli Market News reported on experts’ rumblings that Amazon’s warehouse space for fresh distribution is not where it needs to be to compete with other major retailers. Analyst firm MWPVL International Inc. noted that Amazon has a little over 3 million-square-feet of U.S. warehousing dedicated to its existing AmazonFresh and Prime Pantry grocery programs, a fraction of long-standing brick and mortars like Walmart.
This move is part of a larger strategy by Amazon to double down on its presence in the Houston area. The company has also built two 1 million-square-foot warehouses that will focus on housing goods, one in Humble and one in Katy. According to Chron.com, each warehouse will store millions of items and significantly boost availability of two-day delivery in southeast Texas.
What market will Amazon choose next in its mission to expand its fresh distribution capabilities? Deli Market News will continue to report.