IKEA Acquires Logistics Firm Locus As Online Sales Jump
IKEA has acquired logistics tech company Locus to capitalize on growing online sales.
Ingka Group, the largest IKEA retailer, announced the deal Tuesday (Oct. 6), calling an investment to strengthen the furniture retailer’s digital capabilities.
“In today’s retail landscape, customers expect a seamless home delivery, taking the complex digital systems that make it possible for granted,” the company said in a news release.
“Historically, IKEA has relied on multiple third-party providers for these essential services. The acquisition of Locus represents a significant move by Ingka Group towards making shopping and delivery even smoother for its customers.”
According to the release, Locus offers an artificial intelligence (AI)-powered logistics management platform, featuring “advanced route optimization,” real-time tracking, along with the “smart use of vehicles and resources.”
By integrating these capabilities, Locus will help IKEA improve efficiency on its supply chain, strengthen how the company delivers home furnishings and support its effort to create a faster and smarter distribution network.
The release notes that the deal is happening at a crucial time, as online sales made up 28% of IKEA’s total retail sales during its 2024 fiscal year, up from 11% five years earlier.
“The integration of Locus’s technology will further strengthen IKEA’s ability to meet this growth, complementing earlier strategic technology investments such as Made4net, which will help enhance the company’s warehouse management, and TaskRabbit, which expanded furniture assembly services,” the release added.
A report on the deal by Reuters noted that the acquisition follows last week’s purchase by IKEA of a $213 million property in Manhattan, underscoring the company’s commitment to U.S. growth in spite of ongoing tariff-related pressures.
“In terms of the macroeconomics around us … probably there’s uncertainty in the quarters ahead,” Parag Parekh, chief digital officer at Ingka Group, told Reuters. “But as a company we remain committed to the U.S.”
Last month, IKEA formed a partnership with Best Buy as it looks to use space inside other locations to boost its customer base in “mature” markets in the United States and Europe.
Tolga Öncü, retail manager at Ingka, told the Financial Times this is part of an experiment to expand IKEA’s presence in a way that’s quicker than simply opening new stores.
Öncü added that the Best Buy partnership would bring IKEA “closer to more of the many people” in the U.S. and could be “yet another component for us to accelerate our reach, especially in big mature countries.”
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