Amazon’s new fulfillment center in Detroit was originally scheduled to open this year, Cosclien learned, but Amazon said it would delay that until next year.
The new fulfillment center in Detroit, on the site of the former expo venue, was developed and built by developers in Detroit and Dallas for Amazon.
It is reported that the two real estate developers bought the land from the Detroit government for $16 million. However, Amazon said it did not receive any tax breaks or subsidies from local or state governments.
Construction on the 3.8-million-square-foot megastructure began in late 2020, and Amazon hoped the fulfillment center would be operational by the middle of this year so that its operations could reach peak efficiency by the 2022 holiday season.
Cosclie found that the new fulfillment center had been in place for several months, but Amazon said it had adjusted the timing of its opening.
Amazon spokesman Austin Stowe said that while the fulfillment center has begun “preliminary operations,” we now hope to “officially” use the fulfillment center by 2023.
The spokesman would not disclose the reason for the delay in using the fulfillment center, nor when it will be officially opened next year, and remained tight-lipped about the specifics of “preliminary operations.”
“Considering that the project started during the pandemic, we are not concerned about its delay,” a Detroit official said Monday. “Amazon has made a huge investment and commitment to Detroit, and we look forward to the official opening of the center next year.”
Amazon’s sales growth has slowed this year, and it has delayed multiple plans to open new U.S. warehouses, even abandoning construction of some warehouses outright. A fulfillment center in Delta Township, Michigan, originally scheduled to open this year, has been delayed until 2024, while an Amazon fulfillment center in Gaines Township has been canceled outright.
On the other hand, Amazon said it still plans to set up a new express delivery station in the town of Pittsfield, Washtenaw County, although it has not given a specific launch date.