As internet retailers continue to grow their market share at an astounding rate, many of the larger site operators have been driving demand for ‘Big Shed ‘distribution centres.
Amazon’s fulfillment centre in Rugeley already measures around the size of nine football pitches, yet the company has announced that it intends to double the size of the facility in order to improve efficiency.
This will be the first investment into the Staffordshire fulfilment centre since 2011, when it first opened. At present, more than 600 permanent members of staff are based at the warehouse, and the improvements are expected to create 350 additional roles.
Cannock Chase Council leader, George Adamson, revealed that Amazon applied for planning permission last week, and at this stage believes it is highly likely to be granted.
He says; “Amazon’s proposal to invest further in Rugeley is to be warmly welcomed, together with the new jobs that would be created.
“This shows that Cannock Chase is an attractive place to invest and create jobs for local people.”
Under the submitted plans, as well as doubling the floor space Amazon wishes to establish a new entrance for the facility and improve traffic flow within the site by adding a new roundabout to the existing road layout. In order to cope with the increased volume of staff expected to be based at Rugeley, it also intends to add a number of new car parking spaces, as well as constructing a new bus stop to encourage workers to use public transport wherever possible.
The investment into the fulfilment centre marks Amazon’s latest initiative designed to improve the customer experience for UK consumers. It has pledged a total investment of over £1 billion into its UK operations over the next few years, which will see three additional warehouses open in regional areas by the end of 2016, creating more than 2,000 permanent and part time jobs.
Although Amazon has proven immensely popular in recent years, high street retailers have begun to fight back by offering customers click and collect and door to door delivery options – effectively edging into the retailer’s market by emulating its greatest advantages. In order to continue to build momentum, investments such as Amazon’s latest are essential to prevent the e-tailer losing the market share it has fought so hard to gain.
Do you think the expansion of the Rugeley site is a response to the growing number of retailers investing in multi-channel offerings?
