- Amazon is one of the companies which potentially could see its plans for growth in the U.K. affected by last week's Brexit vote, according to a report from CNBC.
- Amazon previously announced plans to expand its U.K. operations this year by opening two new fulfillment centers in the U.K., and hiring to fill 2,500 jobs there, which would give it 12 facilities and 14,500 employees across the country.
- The e-commerce company has invested more £4.6 billion (U.S. $6.3 billion) in the U.K. in the past six years, but in the aftermath of Brexit, hiring could be difficult, CNBC reports.
It's easy right now to think the worst following the U.K.'s historic Brexit vote to leave the European Union, but the truth is that no one knows yet to what extent it will negatively affect commerce. The actual "exit" of Brexit may not happen for a couple of years, and there are even cases being made for why it might not happen at all, despite the vote results.
If it does happen, it's true that companies, such as Amazon, that are planning to invest a lot of money and hire a lot of people in the U.K. in the coming months and years may need to tread lightly and continue to revisit the scope of their plans. Brexit will result in higher labor costs, a surplus of certain skills and a deficit of others, according to Global Equities Research, slashing the profit margins of many businesses.
However, regarding Amazon in particular, it's fair to wonder if the web-based retailer might be among those that are able to conduct business as usual even if Brexit causes problems throughout the U.K. economy.
Why? Amazon is a retailer that has built an empire in part on strategic and just plain cold-blooded discount pricing. Some retailers, particularly smaller U.K. based retailers, might have trouble meeting a widespread need for cheaper goods, but as a global giant, Amazon has an ability absorb to a great extent any post-Brexit pricing declines the market may demand. And if the demand is there from customers, Amazon may have no choice but to keep fulfillment center expansion on track.
The best attitude for Amazon to have right now is "wait and see." Don’t cancel those big fulfillment centers just yet, and keep interviewing job applicants. Don't panic... even though everyone else already is doing that.