Ikea invests £31.5 million to overhaul UK distribution network

The bulk of the investment, totaling £30 million, is directed toward the Peterborough site over the next two years. By implementing PackSize technology, the retailer expects to automate 75% of parcel processing by 2027, up from the current 47%. This system tailors boxes to the specific dimensions of each order, significantly cutting down on excess cardboard and void-fill materials. The facility has also integrated drone-based inventory management to streamline stock accuracy.

In Doncaster, a £1.5 million trial focuses on regionalizing delivery. The site now handles orders for customers in Glasgow, Edinburgh, and Gateshead, with Sheffield slated for inclusion soon. This shift is projected to slash delivery-related carbon emissions by 280 tonnes annually. According to David McCabe, CEO and CSO at Ikea UK&IE, the investment is designed to bolster long-term operational efficiency while empowering staff to manage modernized workflows.