Reimagining retail logistics: Strategic commercial real estate investments helping transform IKEA Retail’s fulfilment network
IKEA Retail is on a mission: whether online, in-store, or through new distribution hubs, they want to meet customers wherever, whenever, and however they choose to engage. With more than 570 customer meeting points worldwide, including IKEA stores and plan and order locations, Ingka Group is constantly evolving to create a seamless omnichannel experience for the customer.
How commercial property investments contribute to IKEA Retail’s logistics expansion
To complement the real estate portfolios of IKEA Retail and Ingka Centres, Ingka Investments (the investment arm of Ingka Group) also makes strategic commercial real estate investments in prime logistics locations.
“By investing in key distribution and logistics centers, we are not only aiming to achieve long-term financial returns but also contribute to IKEA Retail’s omnichannel fulfilment network”, says Jenna Grader, Ingka Investments Real Estate portfolio manager.
Acquiring these commercial properties help us to maintain predictable costs and invest in automation for IKEA.
A game-changer for Ireland: the Dublin Customer Distribution Centre
Dublin Customer Distribution Centre – a key commercial real estate investment
In 2023, a significant milestone was reached when Ingka Investments acquired Greenogue Logistics Park in Dublin, leading to the launch of IKEA Retail UK & Ireland’s first Irish Customer Distribution Centre (CDC). Before this, Irish customer orders were fulfilled from a distribution center in the UK, causing longer lead times and logistical inefficiencies.
“Establishing a CDC in Ireland is a hugely exciting and significant step in further expansion in Ireland, as well a continuation in our omnichannel strategy to support customers however they chose to shop with us,” commented Jakob Bertilsson, Country Customer Fulfilment Manager at IKEA UK and Ireland.
With the Dublin CDC in operation, delivery times have been cut by more than half, product availability has increased and with over 100 new jobs, IKEA has a secured presence in Ireland.
But speed isn’t the only win. Just as in all of our distribution centers, sustainability is at the core of this location. The new facility is one of Ireland’s most environmentally sustainable and energy-efficient logistics hubs, featuring rainwater harvesting and solar panels, and earning a BER A2 rating.
Our story doesn’t end there! We will continue to support IKEA Retail’s omnichannel growth through real estate investments that help us meet more customers where they are. Stay tuned for what’s next.
We invest across various commercial real estate types. Read about how we also invest in multi-purpose properties in core inner city locations.