Amazon.com (AMZN) is planning on opening a 1 million square-foot warehouse near Mexico City, as the e-commerce giant looks to bolster its online retail presence in Mexico, Reuters reports.
The new mega-facility will be constructed in the Mexican municipality of Tepotzotlan, roughly 25 miles north of the country's capital city. The warehouse is slated to be completed next year and would triple Amazon's distribution space in Mexico, where 120 million potential customers reside.
While Amazon is a relatively new comer to the Mexican market, having just launched the sales of physical goods in the country two years ago, it's growing much faster than its rivals in Mexico, including Walmart (WMT) .
Amazon is Mexico's third-largest retailer with $253 million in sales last year, double the amount it generated a year earlier.
Shares of Amazon were climbing in mid-morning trading on Wednesday.
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