IKEA invests £31.5m in Peterborough and Doncaster distribution centres
IKEA is investing £31.5 million in its Peterborough and Doncaster customer distribution centres (CDCs) as it looks to make online fulfilment from the sites more efficient and sustainable.
This includes £30 million in new technology for the Peterborough CDC, with the upgrades taking place over a two-year period. As part of the investment, IKEA has launched new PackSize technology, which packages customer orders to size to prevent waste from oversized cardboard boxes and filling materials.
Subscribe to TRBThe technology is expected to increase the share of parcels processed through automation at Peterborough from around half today to three-quarters in 2027.
IKEA is also investing £1.5 million in trialling a new fulfilment capability at its Doncaster CDC. The site now fulfils orders for customers in the Gateshead, Edinburgh and Glasgow areas, with plans for Sheffield to follow.
By fulfilling these orders from Doncaster rather than Peterborough, IKEA expects to reduce emissions from delivery journeys by an estimated 280 tonnes of CO2 annually.
IKEA said the investments will strengthen its UK fulfilment network as its online sales continue to grow and now account for almost half of total UK sales.
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.
“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.”
