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Amazon wants to use JC Penney stores as a fulfillment hub



A worker is assembling a box for delivery at Amazon’s fulfillment center in Baltimore, Maryland, USA, April 30, 2019.

Clodagh Kilcoyne | Reuters

Amazon is in talks with mall owner Simon Property Group about the use of some JC Penney and Sears stores that have closed for Amazon fulfillment centers, The Wall Street Journal said on Sunday.

“For Amazon, more fulfillment centers closer to residential areas will speed up critical deliveries in the last mile,”

; the Wall Street Journal said. “For Simon, moving what used to be mall spaces to fulfillment centers suggests they’ll be willing to give up a way needed to bring in more mall traffic to ensure a stable number of tenants.

Simon Property Group declined to comment on the report. An Amazon spokesperson was not immediately available for comment.

Amazon has long focused on the so-called “last mile” of deliveries. For example, in 2018, the company began recruiting drivers for delivery in neighboring areas. It has also tested and explored the use of drones to deliver packages. Amazon Lockers is available in a number of other retail stores around the country where customers can pick up the items they ship online.

Sears and JC Penney locations can give Amazon more fulfillment center space, closer to customers, where delivery drivers can come to unload and pick up packages. That can help speed up the lead times from Amazon.

The Wall Street Journal said it was unclear how many stores inside the Simon mall were being considered.

In June, JC Penney said it would close 154 retail stores this summer. JC Penney filed for bankruptcy in May and is on track to sell this fall. Sears announced in November 2019 it plans to close 96 stores.

CNBC’s Lauren Thomas contributed to this report.

Read more on the Wall Street Journal.


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