IKEA to invest £2.45B in its stores

Ingka Group (IKEA’s biggest franchisee) announced on May 9th, that it would invest more than £2.4 billion in its stores according to Retail Dive.

Both new and existing stores will receive investment to help double their e-commerce distribution points as well as their physical landscape.

Markets included in expansion: U.S., France, Finland, Canada, Germany and Spain. £1.2bn will be allocated to its London market, including to its Oxford Street store, new services and a new distribution centre in Dartford, which will allow the company to make home deliveries within 24 hours.

E-commerce surged COVID. Ikea is now investing in its physical locations to make them more compliant with online orders.

The investment aims to create a more immersive experience. Helping to support the increase in home deliveries, the company said, pointing to its recently rebuilt store in Kuopio, Finland, which now helps to fulfil online orders. 

Ingka said with that store’s improvements, customers can receive online orders in half the time and the company has reduced delivery costs by 40%.

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