Amazon wants to use JC Penney stores as tracking centers


A worker collects a box for delivery at the Amazon tracking center in Baltimore, Maryland, USA, April 30, 2019.

Clodagh Kilcoyne | Reuters

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

“For Amazon, more tracking centers near residential areas would accelerate the crucial last mile of delivery,” The Wall Street Journal reported. “For Simon, turning around what was once prime mall space for follow-up centers shows that it would be willing to give up an essential way to bring in more shopping to secure a rigid tenant.

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

Amazon has long focused on its so-called “last mile” of delivery. In 2018, it began recruiting drivers to deliver goods in neighborhoods, for example. It has also tested and investigated the use of drones to deliver packages. Amazon Lockers are in some other retail stores around the country where customers can go to pick up the items they supply online.

The Sears and JC Penney locations could give Amazon more space for tracking center, closer to customers, where delivery drivers could unload and pick up packages. That can help speed up the time it takes to deliver an order delivered from Amazon.

The Wall Street Journal said it was unclear how many of the stores in Simon’s mall were considered.

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

CNBC’s Lauren Thomas contributed to this report.

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