Inditex Purchases Amazon’s Distribution Center in Ireland

Spanish billionaire and Zara founder, Amancio Ortega, recently acquired an Amazon logistics center in Dublin, Ireland, for €225 million (US$244.98 million). This move could pose challenges for Amazon as the center played a crucial role in faster delivery services across Ireland. 

Ortega's venture into the logistics sector is not a new endeavor. In July this year, the billionaire acquired a Walmart distribution center in California for €100 million. The founder of Inditex invests part of the dividends he receives from the textile company in the real estate sector through his investment firm, Pontegadea Inmobiliaria. The purchase of the Amazon-dominated facility in Dublin's Baldonnell Business Park aligns with Pontegadea's broader strategy of investing in multiple real estate assets, including logistics centers, luxury buildings, and renewable energy projects. 

The acquisition of the Dublin logistics center, currently leased by Amazon, highlights a strategic shift toward long-term, diverse assets. Pontegadea reported a net profit of €2.09 billion in 2022. 

The Baldonnell Business Park facility, where Amazon established its presence on Oct. 22, covers 630,000ft2, was inaugurated just over a year ago, and resulted in the creation of 500 jobs. 

At the time the logistic center operated by Amazon opened, the company said that it “[continues] to invest in Ireland and the impact of its investments today supports 8,700 jobs directly and indirectly and generates growth in economic output of €1.45 billion a year.” However, in April 2023, 200 jobs were cut in Dublin due to “redundancy,” reported The UK Times. 

Inditex, the parent company of Zara and a significant source of Ortega's wealth, reported a 40.1% increase in net income amounting to €2.5 billion. Notably, 19.4% of the sales were attributed to the Americas, contributing to the overall profit rise of 14.1% to €9.8 billion.

As of 2022, Inditex operates a total of 382 stores in Mexico, including 80 Zara stores and 73 Bershka stores. Meanwhile, Amazon has recently opened a last-mile distribution center in Mexico City.