Amazon add urban Chicago warehouse to support same day delivery growth
By Dan Boaz | May 12, 2015
In previous posts on the Same Day Delivery blog we've written at length about the changing approach that Amazon, along with others, are taking to alter the existing distribution center model for same day delivery and on-demand delivery. Led by Amazon and followed by other large retailers both online and offline there is an ongoing battle to position inventory as near as possible to larger urban, concentrated audiences to allow the seller to meet delivery windows and of course manage costs as effectively as possible.
We've speculated that the arrival of Amazon, Ebay or Google stores within traditional bricks and mortar setting is one likely avenue we may see grow but Amazon have further changed the playing field with a new experiment in Chicago this month. Located centrally in the northwest pocket of the city and near to hundreds of thousands of potential customers the new Goose Island warehouse could be an indicator of how Amazon.com is planning to improve urban logistics.
Local real estate sources have confirmed that Amazon are to lease an entire 52,000 square foot facility on Goose Island (pictured below), so named because it sits between the North Branch of the Chicago river and canal. Within about three miles of this location, reside more than a third of Chicago's 2.7 million population and notably the most affluent demographic live in that catchment area. Naturally such a location affords Amazon the opportunity to provide fast urban delivery from a local hub.
The facility is anticipated to hire approximately 1,000 full-time employees and hopes to be completely operational by 2017. Assuming this is a signal of intent it may be the first of many located in the numerous cities where Amazon currently offer same day delivery services. The city is currently also supported by a new distribution center in nearby Kenosha, Wisconsin.
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