Amazon plans major same-day network buildout

Amazon (AMZN) is preparing a large expansion of its U.S. same-day delivery network through an internal initiative known as Project Mercury. The plan calls for increasing the number of same-day fulfillment facilities from roughly 85 today to more than 1,000 by 2031. This buildout would mark a major shift in the structure and density of Amazon’s (AMZN) logistics network within the United States.

Project Mercury is designed to move popular products much closer to customers, with a goal of placing inventory within a 10-mile radius of about 80% of U.S. Prime members. The strategy emphasizes speed and geographic coverage, focusing on locations that can support rapid order processing and delivery.

The new same-day sites will not carry Amazon’s full catalog. Instead, they are planned to stock a narrower assortment of roughly 90,000 high-demand items. These items include everyday products such as groceries, household supplies and medicines, reflecting categories where rapid delivery is particularly valuable.

By concentrating on a curated selection of fast-moving goods, the network is structured to support quick picking, packing and delivery. This narrower inventory model differs from larger fulfillment centers that hold a wider range of merchandise but are typically located farther from customers.

Internal planning documents allocate about $6.8 billion for U.S. same-day fulfillment capacity related to Project Mercury in 2026 and 2027. This spending is intended to support the buildout of new facilities and related infrastructure to achieve the targeted network scale.

The same documents include projections that the initiative could become cash-flow positive by 2030. Over a 10-year period, Project Mercury is forecast to generate roughly $7.1 billion in economic value, indicating expectations that the upfront investment could be offset by long-term financial benefits.

Project Mercury takes shape against the backdrop of Walmart’s (WMT) established physical footprint in the United States. Walmart (WMT) operates roughly 5,000 stores, which place fast delivery options within 10 miles of about 90% of the U.S. population.

Those stores support same-day fulfillment for many orders, giving Walmart (WMT) a proximity advantage in delivering everyday goods. Amazon’s planned same-day network expansion seeks to narrow this gap in local availability and speed by building a denser network of smaller, strategically located facilities.