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Amazon (AMZN) Carencro Fulfillment Center to Add Above 500 Jobs

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Amazon (AMZN - Free Report) intends to open a fulfilment center in Carencro, LA, in order to meet the growing online demand.

Notably, this facility, which is likely to open in 2021, will be the first of its kind by the company in the state of Louisiana.

According to Amazon, the new fulfilment center, 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.

The company intends to leverage the new facility to pick, pack, and ship large-sized and bulky customer items such as rugs, outdoor items and patio furniture.

The latest move is in sync with the company’s continued efforts toward expanding the fulfillment network and delivery capacity.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Growing Investments in Louisiana

The world’s largest online retailer has been strengthening presence in Louisiana since 2010.

Amazon’s investment in this state has exceeded $250 million since then. It includes investment in infrastructure and compensation to employees.

Further, the company operates three delivery stations and seven Whole Foods Market locations in this state.

Furthermore, we note that it has created more than 750 indirect jobs to date in this particular state.

Bottom Line

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 its leading position. To this end, the company needs to continue investing more in fulfilment 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.

We believe that heavy investments in fulfilment centers will continue to provide Amazon a competitive edge against other e-commerce players such as eBay (EBAY - Free Report) and MercadoLibre (MELI - Free Report) as well as traditional retailers like Walmart (WMT - Free Report) , Target and Kroger, who are also making concerted efforts to bolster their fulfillment network.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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