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Ikea to modify out-of-town stores to enable ship from store

Ikea owner Ingka Group is to spend 3 billion euros during 2023 on new and existing stores which will include the modification of existing out-of-town stores to allow them to operate as ecommerce distribution centres.

Much of the investment will include automation of the out-of-town stores’ existing warehouse sections.

Speaking to Reuters, Ingka Group retail manager Tolga Oncu said around a third of the investment will be used to test new store formats and logistics set-ups in London. He said that by including stores in the company’s last mile and fulfilment network would create a “win-win situation” for the brand. By adopting the ship from store model the group would be able to offer faster, cheaper and more sustainable deliveries, he explained.

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