IKEA UK and Ireland open first Irish Distribution Centre - CILT(UK)
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LATEST NEWS

IKEA UK and Ireland open first Irish Distribution Centre

19 April 2024/Categories: Industry News, Freight Forwarding, Logistics & Supply Chain, Net-Zero


IKEA has opened a state-of-the-art distribution centre in Rathcoole, marking a significant expansion of the company's operations in Ireland.

The new facility, employing over 200 people, follows investments in six plan and order points, upgrades to the Ballymun store, and a collaboration with Tesco Ireland for an affordable collection service.

The 27,000 square metre distribution centre has a storage capacity of 20,000 cubic metres, capable of housing up to 9,000 different product lines from the IKEA range.

Wincanton who are a long-term IKEA service provider have signed a 5 year deal to operate the facility and delivery will be carried out by XPO supporting IKEA on its journey to only deliver using zero-emission vehicles.

Jakob Bertilsson, Country Customer Fulfilment Manager, IKEA Ireland and UK said: “The opening of Ireland’s first IKEA distribution centre will greatly benefit our customers through faster and more reliable deliveries.”

“It marks a key step in our ambitious expansion plans across Ireland. We remain committed to – and are continually investing in – the future of our physical store in Dublin, but we want people to enjoy the IKEA experience no matter where they choose to engage with us, whether through our full-size store, plan and order points, or online.

“This new distribution centre will greatly enable this, by increasing availability of our products and reducing lead times,” he added.

Previously, IKEA deliveries to Irish consumers were dispatched from the UK, resulting in longer delivery times. With the inauguration of this multi-million-euro facility, delivery times are expected to reduce to just three days.

The company said this strategic move not only brings IKEA products closer to its Irish customers but also significantly improves product availability throughout Ireland.

IKEA expects the distribution centre to make over 300,000 deliveries in the first year of operation, with that figure nearly doubling to 600,000 within five years. Eventually, the plan is to deliver up to three million items annually from the centre.

Minister of State for Business, Employment and Retail, Emer Higgins TD, said: "IKEA’s new distribution centre in Rathcoole will provide a boost for the local economy, creating 120 new jobs.

“It is also positive news for its customers, significantly reducing IKEA’s delivery times and enhancing accessibility for its Irish customers. This state-of-the-art facility is also a testament of IKEA’s unwavering commitment to sustainability.

“This building is one of the most energy efficient logistic facilities in Ireland and will support IKEA’s transition to 100% zero emission deliveries by August 2025. There is no doubt IKEA’s dedication to become climate positive sets a commendable standard for the entire retail industry.”

The new distribution centre also underscores IKEA's commitment to sustainability as the building is one of the most sustainable and energy-efficient logistics facilities in Ireland.

It has a Building Energy Rating (BER) of A2 and includes features like rainwater harvesting and roof-based solar panels.

IKEA has said they are transitioning to exclusive zero-emission home deliveries, which together with locating the distribution centre closer to its customers, will result in a significant reduction in CO2 emissions and more sustainable deliveries.

Customers with Dublin Eircodes will receive their home deliveries in zero-emission vehicles.

IKEA explained they are committed to ensuring all deliveries across Ireland will be in zero-emission vehicles by August 2025.

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