Amazon to open DuPont warehouse
The Internet retailer said Friday it will invest more than $100 million in a new distribution center in Pierce County.
Seattle Times business reporter
Seattle-based Internet retailer Amazon.com said Friday it will open a second Pierce County distribution center next fall.
Amazon said it will spend more than $100 million to build the warehouse in DuPont, near Joint Base Lewis-McChord.
The warehouse — part of a rapidly expanding global-distribution network — will cover 1 million square feet, create hundreds of full-time jobs, and handle “larger” items, such as canoes and TVs, Amazon said.
The company opened a 500,000-square-foot warehouse in Sumner in summer 2011.
It also has a smaller distribution center in Bellevue, where it runs its local grocery-delivery service, AmazonFresh.
Gov. Chris Gregoire, in a statement released by Amazon, cheered the company’s local expansion.
“Amazon exemplifies our culture of innovation and global perspective,” she said. “I congratulate Amazon on its ongoing success.”
Amazon did not give details about employee compensation, though it did say its warehouses pay on average 30 percent more than traditional retail jobs, excluding its stock grants for full-time workers. Amazon noted that those grants have added about 9 percent annually to employees’ base pay over the past five years.
Shares of Amazon closed Friday at $249.19, down $2.06.
“We are excited to increase our presence in the state of Washington with this new fulfillment center,” Dave Clark, vice president of Amazon global-customer fulfillment, said in the statement.
Amazon, the world’s largest Internet retailer, is expanding its distribution network to get closer to customers and speed up deliveries of online orders.
It announced plans for at least eight new U.S. distribution centers this year, adding to the 34 it operated at the end of 2011. Amazon said it will take occupancy of the DuPont warehouse in fall 2013.
Heavy spending on new distribution centers was one of the factors that led Amazon in October to post its first quarterly loss since 2003. The company reported a third-quarter loss of $274 million, even as its sales rose 27 percent from a year ago to $13.81 billion.
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