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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: tonyt who wrote (44366)3/7/1999 12:49:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
Are they buying or leasing?
Also, what is the stratigic significance of Nevada?


tonyt,

They are leasing. They are putting a lot of money into Leasehold Improvements. The story given is to better serve the Los Angeles, Houston and Dallas area I believe. My opinion is they needed to carry more inventory and they needed wharehouse space.

Glenn



To: tonyt who wrote (44366)3/7/1999 2:04:00 PM
From: John Donahoe  Read Replies (2) | Respond to of 164684
 
RE: Are they buying or leasing?

I don't know if it's a lease or purchase. I assume they will do what makes the best business sense.

RE: Also, what is the stratigic significance of Nevada?

My recollection from news articles is that it is located in Nevada to decrease shipping times. I also read that it will be/is highly automated. I believe Nevada real estate is fairly cheap and hourly wages are probably lower on average then say, Seattle and other large metropolitan areas. I presume Amzn has investigated these factors and made its purchase/lease decision accordingly.

If we assume this to be the case don't you think it might help reduce fulfillment costs?