IKEA Buys US Logistics Firm Locus to Power Online Expansion

As per the news reports, IKEA has acquired U.S. logistics technology company Locus. The acquisition was made through Ingka Investments, the investment arm of Ingka Group, IKEA’s largest franchisee. The value of the deal has not been disclosed. Locus was last valued at about $300 million in a 2021 funding round.

Cost Savings and Logistics Upgrade

IKEA said the deal will help reduce its global delivery costs by around €100 million ($117.41 million) a year. Locus uses artificial intelligence to plan delivery routes and group customer orders. This replaces manual planning currently done by IKEA staff and is expected to improve efficiency.

Pilot and Expansion

The technology will first be tested in the U.S. and U.K. markets before being introduced globally. The system is designed to provide more delivery time slots, faster services, and real-time tracking for customers.

Locus will continue to operate independently and work with other clients besides IKEA. Its previous investors included Singapore’s sovereign wealth fund GIC, Alpha Wave, Tiger Global, and Qualcomm Ventures.

IKEA’s U.S. Expansion

The acquisition is part of Ingka Group’s $2.2 billion investment plan in the United States. In addition to expanding logistics, the group recently purchased a building in Manhattan for $213 million. The company is facing higher tariffs on imported furniture, which has added to costs in the U.S. market.

Online Sales Share

IKEA has been increasing its online presence over the past 5 years. Online sales accounted for 28% of total retail sales in the 2024 financial year, compared with 11% in 2019. The company is also opening smaller city-based stores alongside its larger suburban outlets.

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Conclusion

The acquisition of Locus adds technology to IKEA’s delivery network as it expands in the U.S. and builds further on its online sales growth.

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