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Amazon Little Rock Fulfillment Center to Add Above 1,000 Jobs

Amazon AMZN intends to open a fulfilment center in Little Rock, AR, 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 city of Little Rock.

According to Amazon, the new fulfilment center, spanning 825,000 square foot, will create more than 1,000 full-time jobs. Further, it will offer wages starting at $15 an hour, including other comprehensive benefits including full medical, vision and dental insurance.

Additionally, maternal and parental paid leave of up to 20 weeks will be provided to employees.

Apart from this facility, the company will also establish a delivery station— marking its second such development in the city.

The new delivery station that is likely to open in late 2020 will be spread across 85,000 square foot. Further, it is expected to create hundreds of permanent, full-time and part-time jobs.

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

Amazon to Gain

Notably, the company has been spending heavily to build and modernize fulfilment centers and delivery stations, primarily to cut shipping costs and speed up delivery. This has been contributing to performance of its online retail business – backbone of its overall business. This, in turn, has aided the company in gaining investor confidence.

Coming to the price performance, Amazon has gained 62.4% on a year-to-date basis, compared with the industry’s rally of 42.7%.


This momentum is likely to continue driven by the company’s aggressive retail initiativesand strategic plans.

Further, Amazon continues to hire manpower to meet growing customer demand. The choice of Little Rock remains positive as the city is known to possess a large trained workforce. Moreover, Little Rock city, which has access to smooth transportation, will aid the company in its interstate connections.

Hence, the latest move is likely to benefit the operation of Amazon.

Wrapping Up

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 fulfilment centers as these giant warehouses help online retailers store and ship products, and handle returns quickly.

Moreover, strengthening delivery system remains crucial for the e-commerce giant in this fast-paced world.

These are important for providing the standard of service that customers have started expecting from Amazon.

We believe all these will continue to aid the company’s dominance in the highly competitive e-commerce market.

Zacks Rank & Other Stocks to Consider

Currently, Amazon carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the retail-wholesale sector that can be considered are JD.com, Inc. JD, eBay Inc. EBAY and Wayfair Inc. W. While JD and eBay sport a Zacks Rank #1 (Strong Buy), Wayfair carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for JD, eBay and Wayfair is pegged at 46.79%, 11.71% and 23.04%, respectively.

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