Douglas Gurr, who became Amazon’s U.K. country manager in April this year, said in July that “Amazon's plans for the U.K. had not changed on the Brexit vote” and Brexit had not hit Amazon’s sales. Keeping the commitment, the online giant Amazon.com Inc. (AMZN) is stepping up its British investments significantly in a strong signal of overcoming the Brexit concerns.
Amazon’s Increased Investments in the U.K.
Amazon had earlier announced that it will be creating around 3,500 new jobs in Britain during the year 2016. These jobs will be spread across a variety of functions which include positions for customer service centers, research and development centers, distribution and logistics centers, and its head office. The planned setup of a new fashion photography studio, and expanded offerings around Amazon Web Services are expected to complement the employment opportunities for Britons. (For more, see: Brexit: GlaxoSmithKline Invests $361M in the UK.)
The addition of new positions will take Amazon U.K.’s full-time employee count to over 15,500 in the year 2016. Last week, Amazon bolstered its commitment to the U.K. market when it announced the opening of a new fulfillment center in Doncaster, northern England in the year 2017. It is expected to create 500 new jobs in the country.
Increasing its investments further in post-brexit U.K., Amazon recently followed with the announcement of a new distribution center in Tilbury, south east England, which will be its 13th warehouse in the country. Slated to start operations in 2017, it will create 1,500 new jobs.
Growing Demand for Online Sales
Amid increasing demand for online goods, Amazon attributes its increased investments to a rapid expansion of its product range to over 150 million items in the U.K. The global online giant is also getting good backing from an increasing number of small business operators who are using its marketplace model to sell their goods. The need to support them through improved warehousing and delivery services is pivotal to Amazon’s business model.
Amazon’s investments add to a growing number of global businesses shrugging off Brexit concerns and increasing investments in the U.K. Recently, GlaxoSmithKline (GSK) invested $361 million in the U.K, which was preceded by SoftBank’s $32 billion all cash buyout of ARM Holdings. (For more, see: Why the SoftBank Deal Bodes Well for the UK.)