Ikea set for distribution shake-up

Ikea is to invest £2.6bn bringing its stores into its distribution network as it continues to adapt to online shopping.

A third of the total will be spent in London which has become a centre of the group’s explorations of new store formats and sizes. 

Stores will be used for warehousing space rather than stand-alone distribution centres and introducing automation to the new warehousing will account for much of the investment.

‘We feel we have a catch-up to do on the back-end of our operation [and] we have realised that by including stores in our last mile and fulfilment design network we can create a win-win situation,’ says Tolga Oncu, Ingka group retail manager.

The group also plans to open new stores in Romania, China and India as well as planning studios in Canada, Denmark, Italy, India and the US.