Amazon to Open New Facility in Germany, Faces Worker Strike (revised)

Amazon (AMZN) plans to open a new facility in Germany this year, in a bid to ensure faster delivery to customers. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon.com Inc. AMZN announced plans to open a new fulfillment center in Germany this year, in order to meet the growing demand in the online shopping space. The facility would be located in the western city of Moenchengladbach.” data-reactid=”11″>Amazon.com Inc. AMZN announced plans to open a new fulfillment center in Germany this year, in order to meet the growing demand in the online shopping space. The facility would be located in the western city of Moenchengladbach.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company has been spending heavily on new fulfillment centers over the past few years. Fulfillment centers are giant warehouses that help online retailers store and ship products, as well as handle returns quickly. These are important for providing the level of service that customers have started expecting from Amazon.” data-reactid=”12″>The company has been spending heavily on new fulfillment centers over the past few years. Fulfillment centers are giant warehouses that help online retailers store and ship products, as well as handle returns quickly. These are important for providing the level of service that customers have started expecting from Amazon.

Amazon.com, Inc. Price and Consensus

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

Regular Strikes in Germany

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company has been expanding presence in Germany. Despite persistent problems, it has opened several fulfillment centers in the country to ensure smooth delivery. The retailer already has 12 fulfillment centers in Germany.” data-reactid=”29″>The company has been expanding presence in Germany. Despite persistent problems, it has opened several fulfillment centers in the country to ensure smooth delivery. The retailer already has 12 fulfillment centers in Germany.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="However, it has faced strikes in the country since May 2013, demanding the right for collective bargaining, proper working conditions and regard for their efforts. Amazon expects to have added 2800 workers across Germany in 2019.” data-reactid=”30″>However, it has faced strikes in the country since May 2013, demanding the right for collective bargaining, proper working conditions and regard for their efforts. Amazon expects to have added 2800 workers across Germany in 2019.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The retailer is again facing a strike by German employees in a few of its warehouses, with the beginning of Prime Day.” data-reactid=”31″>The retailer is again facing a strike by German employees in a few of its warehouses, with the beginning of Prime Day.

Amazon’s Presseanfragen had this quote on the issue:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“While we don’t provide exact numbers, we are seeing very limited participation across Germany with zero operational impact and therefore no impact on customer deliveries.” data-reactid=”33″>“While we don’t provide exact numbers, we are seeing very limited participation across Germany with zero operational impact and therefore no impact on customer deliveries.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""Amazon proves every day that you can be a fair and responsible employer without a collective agreement. In our fulfillment centers, our wages are at the upper end of what is paid in comparable jobs.”” data-reactid=”34″>“Amazon proves every day that you can be a fair and responsible employer without a collective agreement. In our fulfillment centers, our wages are at the upper end of what is paid in comparable jobs.”

Our Take

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Nevertheless, Amazon’s robust fulfillment network of warehouses in Germany is significantly capable of negating the impact of the strike.” data-reactid=”36″>Nevertheless, Amazon’s robust fulfillment network of warehouses in Germany is significantly capable of negating the impact of the strike.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This in turn will lessen the impact of the strike on the company’s Prime Day performance. For this event, Amazon’s strengthening initiatives, which are focused on providing enhanced shopping experience backed by robust product offerings, deep discounts on various items and Prime benefits, are likely to aid it in gaining traction among customers.” data-reactid=”37″>This in turn will lessen the impact of the strike on the company’s Prime Day performance. For this event, Amazon’s strengthening initiatives, which are focused on providing enhanced shopping experience backed by robust product offerings, deep discounts on various items and Prime benefits, are likely to aid it in gaining traction among customers.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Further, its automation drive through the use of robots in fulfillment centers is on a high and remains a major positive.” data-reactid=”38″>Further, its automation drive through the use of robots in fulfillment centers is on a high and remains a major positive.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="These endeavors of the company are likely to further drive sales in many countries and aid it in winning customers’ confidence.” data-reactid=”39″>These endeavors of the company are likely to further drive sales in many countries and aid it in winning customers’ confidence.

Zacks Rank & Stocks to Consider

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Expedia Group, Inc. EXPE, eBay Inc. EBAY and Ctrip.com International, Ltd. CTRP. While both Expedia and eBay sport a Zacks Rank #1 (Strong Buy), Ctrip.com carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.” data-reactid=”41″>Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Expedia Group, Inc. EXPE, eBay Inc. EBAY and Ctrip.com International, Ltd. CTRP. While both Expedia and eBay sport a Zacks Rank #1 (Strong Buy), Ctrip.com carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Long-term earnings growth for Expedia, Dropbox and Ctrip.com is currently projected at 12.3%, 9.4% and 15%, respectively.” data-reactid=”42″>Long-term earnings growth for Expedia, Dropbox and Ctrip.com is currently projected at 12.3%, 9.4% and 15%, respectively.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(NOTE; This article has been republished to correct several errors. The original report, posted July 16, 2019, should no longewr be relied upon.)” data-reactid=”43″>(NOTE; This article has been republished to correct several errors. The original report, posted July 16, 2019, should no longewr be relied upon.)

Radical New Technology Creates $12.3 Trillion Opportunity

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.” data-reactid=”45″>Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” – and early investors stand to earn the biggest profits.” data-reactid=”46″>Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” – and early investors stand to earn the biggest profits.

>” data-reactid=”47″>See the 7 breakthrough stocks now>>

Amazon to Open New Facility in Germany, Faces Worker Strike (revised)

Add Comment

Cancel reply

Jim Cramer’s week ahead: Earnings from Nvidia, TJX and Walmart

What Can Investors Expect From Retail Earnings?

Mizuho Raises Salesforce Inc (CRM) Price Target to $370 on Strong Renewals and Agentforce Momentum

Jeff Bezos Sells More Amazon Stock. He’s Done for Now.

Netflix’s push into live ‘allows them to advertise’: Analyst

Categories

You may also like

Add Comment

Categories