Amazon Is Closing Warehouses: Does That Help Shopify Stock?
When Shopify (NYSE: SHOP) announced it was creating its own fulfillment network, it changed the game for the internet juggernaut. While it still competes against the likes of Wix and Squarespace in website creation services, that move arguably made it a closer competitor to e-commerce giant Amazon (NASDAQ: AMZN) and its vast fulfillment network.
But instead of adding warehouses in response, Amazon announced recently that it plans to close some warehouses and cancel or delay other buildings. Considering that Shopify is a new and much smaller player in this space that is looking to grow, the potential availability of property may lead investors to ask whether Amazon's decision could put Shopify in a stronger position.
One profound effect of e-commerce that receives relatively little attention is how it changed the real estate landscape. Retail real estate is currently in "transition" with only a modest construction pipeline, according to real estate specialist CBRE. Conversely, CBRE said that industrial real estate became tight as retailers sought such spaces to conduct e-commerce fulfillment.
Source Fool.com
