Amazon expansion to slow further in 2023

Online retailer Amazon expects its warehouse expansion slowdown to deepen in 2023.

The company had already begun adjusting infrastructure spending earlier this year after reporting it had overbuilt its warehouses during a rapid 24-month period during the Covid-19 pandemic, when online shopping expanded significantly.

"We have slowed our 2022 and 2023 operations expansion plans to better align with expected customer demand," said chief financial officer Brian Olsavsky on an earnings call on 28 July.

Steel service centers involved in warehouse-related businesses have noted a slowdown in demand since Amazon reported in the second quarter that it overbuilt its warehouse infrastructure.

By Rye Druzin