Ikea investing £1.5m in Doncaster distribution centre as 80 new jobs created
Furniture giant Ikea is investing £31.5m across its Peterborough and Doncaster Customer Distribution Centres (CDC) in a bid to make its online fulfilment “more efficient and sustainable”.
In Doncaster, the company is investing £1.5m in trialling a new fulfilment capability, in a move Ikea said had created 80 new jobs.
The site now fulfils orders for customers in the Gateshead, Edinburgh and Glasgow areas, with plans for Sheffield to follow.
David McCabe, CEO and CSO of Ikea UK&IE, said: “At Ikea, we are always on the lookout for new ways to do things better, and that’s true across the operational side of our business just as much as the innovative new products and services we bring to market.
“These investments in our Peterborough and Doncaster Customer Distribution Centres will ensure fulfilment is smoother than ever and reduce our environmental footprint – while positioning the business for long-term success by strengthening operational efficiency and supporting sustainable growth.
By fulfilling orders from Doncaster rather than Peterborough, Ikea said it expects to reduce emissions from delivery journeys by an estimated 280 tonnes of CO2 annually.
Ikea is investing £30m in new technology for its Peterborough CDC, with the upgrades taking place over a two-year period.
As part of the investment, Ikea has launched new ‘PackSize’ technology to prevent waste from oversized cardboard boxes and filling materials by packaging customer orders to size. On average, the technology reduces material usage by up to 30 per cent and void fill by up to 60 per cent.
The technology is expected to increase the share of parcels processed through automation at the Peterborough CDC from around half today to three-quarters in 2027.
Three drones and nests were also introduced at the site in January to support inventory management. The drones scan each aisle in short cycles, helping Ikea to keep stock in the right place.
Mr McCabe added: “Our wonderful teams of co-workers in Peterborough and Doncaster work tirelessly getting orders to our customers, and we couldn’t function without them. We’re empowering our people to get the best out of these new technologies, and we’re excited to watch them grow alongside the business.”
It comes after earlier this month, Ikea launched a second-hand marketplace for its own furniture and homewares as it takes on the likes of eBay and Vinted.
The Swedish retail giant said the platform would provide greater access to affordable Ikea products, with prices on average 60 per cent lower than new items.
Members of the firm’s loyalty scheme Ikea Family will be able to list home furnishing products, with the exception of mattresses, appliances and food.