Ingka Group Invests in Advanced Automation at IKEA South Korea to Boost E-Commerce Fulfillment

Ingka Group Invests in Advanced Automation at IKEA South Korea to Boost E-Commerce Fulfillment

(IN BRIEF) IKEA South Korea has implemented advanced automation systems at its Giheung store as part of a global initiative by the Ingka Group to enhance customer experience and operational efficiency. The €11 million investment in technology, including wireless-controlled robots and automated packaging systems, aims to meet the growing demand for e-commerce, improve delivery times, and provide ergonomic support for workers. This initiative is part of a broader €300 million investment in the Korean market over the next three years, reflecting IKEA’s commitment to sustainability and innovation.

(PRESS RELEASE) LEIDEN, 22-Aug-2024 — /EuropaWire/ — IKEA South Korea has marked a significant milestone in its ongoing commitment to enhancing customer experience and operational efficiency by integrating advanced automation systems into its Giheung store. This development is part of a broader global initiative led by the Ingka Group, the largest franchisee of the IKEA brand, which has committed approximately €300 million to the Korean market over the next three years. The Giheung store’s automation upgrades, representing an €11 million investment, are designed to meet the surging demand for e-commerce, enabling faster and more accurate delivery services while improving working conditions for IKEA co-workers.

The newly implemented system utilizes wireless-controlled robots to efficiently store, pick, and transport products, drastically reducing manual labor and increasing productivity. These robots not only streamline the order fulfillment process but also enhance sustainability efforts by optimizing energy use and reducing packaging waste. The innovative packing solution creates custom-sized boxes from FSC-certified cardboard, minimizing environmental impact.

Marcus Baumgartner, Global Head of Fulfillment & Services for Ingka Group, highlighted the importance of this advancement, stating, “By revamping our stores and embracing new technology, we are able to support our co-workers while still providing inspiration for our customers and being closer to meeting their needs.”

With the capacity to process approximately 2,000 orders daily and pack 300 boxes per hour, IKEA South Korea’s automation initiative is set to significantly enhance the omnichannel shopping experience, marking a pivotal step forward in the company’s global strategy.

About Ingka Group

With IKEA retail operations on 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on www.Ingka.com.

Media Contact:

Tel: +46 70 993 6376
email: press.office@ingka.com

SOURCE: Ingka Holding B.V