Amazon continues to grow and today announced plans to build three new fulfillment centers in Texas, creating more than 1,000 new jobs in the Lone Star State.
Last week Amazon also announced plans to open a new 1-million square-foot fulfillment center in outside of San Francisco in Tracy, California.
Interesting to note that these new centers are sprouting up in California and Texas, two big states where the retailer recently reached sales tax deals.
Amazon started agreeing to collect sales taxes on purchases in some states where it didn’t operate physical locations, while simultaneously inking deals to bring massive warehouses (and jobs) to population centers such as California, New Jersey and Texas.
Now that they’ve reached agreements to charge sales taxes, the once-heated tax fight is a moot point and the company is focusing on building out its distribution centers to get closer to customers and make shipping more efficient.
The sites in Texas will be located in the cities of Coppell (1-million sq. ft), Haslet (1.1 million sq. ft) and Schertz (1.2 million sq. ft). Amazon said the centers will use “advanced technology,” and it appears Amazon is pushing toward much more automated facilities, utilizing technology that it purchased from warehouse robot maker Kiva Systems.
“This is the biggest economic development partnership announcement in the history of our city,” city of Haslet Mayor Bob Golden said in a press release. “The jobs and potential tax base that this development will bring to our community is a major milestone in our city’s growth.”
All these new operations also will likely raise speculation about Amazon’s same-day delivery operations. Putting warehouses closer to population centers means that the company can effectively delivery products faster, A number of Amazon rivals tested same-day delivery operations this past holiday season.
Yesterday afternoon Amazon posted a 45 percent decrease in profits for its biggest quarter of the year, falling short of Wall Street’s expectations.
The company’s profits of $97 million for the December quarter translated into earnings of 21 cents a share, compared with the average of 29 cents projected by analysts polled in advance by Thomson Reuters. Still, though, CEO Jeff Bezos says one of the company’s biggest benefits is paying off, as digital books and the company’s Kindle business show significantly greater momentum than traditional books.