Amazon is closing its West Sacramento fulfillment center. Will it delay customers’ orders?
Following news that Amazon plans to let its lease expire at a West Sacramento grocery fulfillment center, the company said it will help employees transfer to other sites in the area, and offered assurances that customers won’t see disruptions.
Amazon spokesperson Steve Kelly said orders handled by the West Sacramento site will soon be processed by other facilities in the area. The company has a broad footprint here, with more than 10 operations sites in the region.
The site, located at 3640 Ramos Drive, employs 159 people and is expected to close Oct. 30. The company also plans to shutter a site in Irvine, on Nov. 7.
Dan Romanoff, a senior equity analyst who covers the company for the investment firm Morningstar, said that while Amazon has pared back expansion plans in the wake of a return-to-office-era dip in e-commerce, the two recent California closures may have been isolated decisions.
“These companies think of every little detail,” Romanoff said. “They’re constantly probing for any little efficiency they can gain.”
Amazon leaders, he said, typically look for any move that serves to lower prices, speed up deliveries and broaden customers’ selections, Romanoff said. The company can decide to shift operations from one site to another if, for instance, a different location offers faster access to roadways or larger square footage to store more brands.
“The focus on efficiency,” he said, “is laser-like.”
This story was originally published September 13, 2024 at 3:58 PM.
