IKEA’s €3bn stores transformation to ramp up distribution

IKEA is spending 3 billion euros to dramatically ramp up its e-commerce offering, modifying a number of out-of-town stores to double up distribution centres

The company’s retail manager Tolga Oncu says the money will be spent across all regions, with a third being spent within London.

The changes will be made in existing stores.

IKEA’s retailer, the Ingka group, has been adapting to the rise in online shopping by improving its website, releasing an app as well as providing digital services.

Oncu says the last step now is to “catch-up” physical stores and the company’s operations.

By shipping online purchases from nearby stores instead of logistics centres, IKEA can lower their emissions and customer’ deliveries can be made cheaper and quicker.