Amazon to open massive new London warehouse

Steve Dinneen
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AMAZON says it will create an eighth high-tech warehouse on the outskirts on London as it prepares to increase its product range and meet an expected rise in demand for online shopping.

The plans will see the retailer create up to 4,000 new jobs in the UK by Christmas next year, with its core market for books and DVDs growing by 19 per cent year-on-year.

The online retailer plunged 12 per cent yesterday, wiping $11bn (£6.92bn) from its value, after it said it could lose as much as $200m in its fourth quarter. The firm has pumped millions into developing the Kindle Fire, which it hopes can unseat Apple as the undisputed champion of the nascent market. Amazon has not revealed whether the $199 tablet is being sold at a loss but some analysts have calculated it could cost the firm $50 per unit.

Amazon also got UK competition clearance for its purchase of the Book Depository yesterday.