Amazon warehouse traffic illustrates importance of retailer

April 3, 2020 By Yiannis Tsiounis Tags: REAL ESTATE, COVID-19

Average daily traffic to Amazon warehouses spiked dramatically in March as the retailer ramped up its staff. Average daily traffic in March was up 43% compared to year earlier, far outstripping seasonal staffing increases.

In the first few days of April the number of Amazon employees seen at their warehouses has continued to grow, as demand for home delivery surges, with increasing numbers of people following strict orders from local authorities to stay home.

Advan: Amazon Warehouse Employees

Historically, based on Advan's analysis, the number of employees seen at Amazon warehouses has a strong correlation - approximately 0.85 - with company revenues.

Advan also tracked truck traffic for Amazon across the US. This measure shows a slight increase in delivery traffic, but not as pronounced as the increase in employees. This may reflect a reduction in the number of available drivers, or the Amazon's ability to efficiently consolidate deliveries in order to keep up with demand.

Advan: Amazon Warehouse Trucks

The coming days will be critical for the retailers as it navigates the difficult line between fulfilling the essential duty of delivering products to customers staying home, and protecting its employees from the COVID-19 virus through distancing measures within the workplace.

About Advan

Advan is the leader in the financial and real estate industries, enabling participants to analyze foot traffic data across multiple sectors, including retail, hospitality, consumer services, energy, technology, healthcare, REITS, financials and others. Advan derives its datasets using multi parameter models that analyze cellphone location data crossed with curated geofenced areas.

Top tier institutional investors spanning from quantitative hedge funds to fundamental asset managers have been the main consumers of Advan’s products.