Amazon AMZN intends to open a fulfillment center in Deltona, FL, in order to meet the growing demand in the online shopping space.
According to Amazon, the new facility, spanning one-million square foot, will create more than 500 full-time jobs. Further, it will offer wages starting at $15 an hour, including other comprehensive benefits like full medical, vision and dental insurance.
Additionally, maternal and parental paid leave of up to 20 weeks will be provided to employees.
Notably, the new upcoming center will primarily focus on items such as patio furniture, sports equipment, pet food, kayaks, bicycles, fishing rods and large household goods.
The latest move is in sync with the company’s continued efforts toward expanding its fulfillment center network. Notably, the company has been spending heavily on its new fulfillment centers globally over the past few years.
Growing Investments in Florida
The world’s largest online retailer has been strengthening presence in Florida since 2013.
Amazon’s investment in this state has exceeded $5 billion since 2013. It includes investment in the development of local fulfillment centers, research facilities and cloud infrastructure, and compensation to thousands of employees.
Further, we note that the company has created more than 13,500 full-time jobs in Florida and continues to hire manpower to meet the growing customer demand.
Additionally, Amazon’s other fulfillment facilities in this state are located in Orlando, Miami, Tampa, and Jacksonville.
The company also offers programs like Career Choice to help employees pursue courses related to fields that are in demand.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. revenue-ttm | Amazon.com, Inc. Quote
The world’s largest online retailer has been strengthening presence worldwide.
In our view, Amazon must maintain its U.S. market share while expanding globally to retain leading position. To this end, the company needs to continue investing more in fulfillment centers as these giant warehouses help online retailers store and ship products, and handle returns quickly.
These are important for providing the level of service that customers have started expecting from Amazon.
Apart from fulfillment centers, the company is investing heavily on technology and content, especially in international markets with less penetration and higher growth rates.
We believe all these will continue to aid its dominance in the highly competitive e-commerce market.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector that can be considered are Zumiez ZUMZ, Boot Barn Holdings BOOT and Fiverr International FVRR. While Zumiez and Boot Barn sport a Zacks Rank #1 (Strong Buy), Fiverr carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Zumiez, Boot Barn and Fiverr International is pegged at 12%, 17% and 44.18%, respectively.
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