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IKEA has acquired U.S.-based logistics technology company Locus, aiming to enhance delivery speed and flexibility as the retailer expands its online presence. The move complements Ingka Group's USD 2.2 billion U.S. investment strategy, even amid higher tariffs on imported furniture. Locus, valued at USD 300 million in 2021, uses artificial intelligence to optimize delivery routes, reducing costs by an estimated EUR 100 million annually. The technology will initially be piloted in the U.S. and UK, improving customer tracking, multiple delivery options, and overall shopping experience.
IKEA has purchased Locus, a U.S. logistics technology firm, as part of its efforts to improve online sales and make deliveries faster and more efficient for customers. The deal, whose value IKEA did not disclose, is an extension of Ingka Group's ongoing USD 2.2 billion investment in the U.S., where it faces competition from Wayfair and Walmart, along with rising import tariffs increasing operational costs. Advertisement
Locus was last valued at USD 300 million in 2021. The acquisition is expected to streamline IKEA's logistics and reduce global delivery expenses by approximately EUR 100 million (USD 117.41 million) annually. Locus employs artificial intelligence to consolidate orders and predict optimal delivery routes, a process previously managed manually by IKEA staff, Parag Parekh, chief digital officer at Ingka Group, explained.
The technology will allow IKEA to offer more flexible delivery windows, real-time package tracking, and faster delivery times. Initial implementation is likely in the U.S. and UK, with plans to expand globally. Parekh emphasized that the system improves not only speed but also customer experience through flexibility and better tracking.
Before this acquisition, Locus' investors included Singapore's sovereign wealth fund GIC and private equity firms such as Alpha Wave, Tiger Global, and Qualcomm Ventures. Following the deal, Locus will continue to operate independently and serve clients outside IKEA.
IKEA has increasingly focused on online sales over the past five years, alongside opening smaller city-center stores to attract urban shoppers. Online sales contributed 28% of total retail revenue in its 2024 fiscal year, a significant increase from 11% in 2019. The acquisition aligns with IKEA's broader U.S. expansion strategy, which recently included the purchase of a Manhattan building for USD 213 million, despite higher furniture import tariffs. Parekh noted that while economic uncertainties persist, the company remains committed to growth in the U.S. market.
Source Reuters
5th Jun, 2025
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