Swedish furniture giant IKEA announced it has acquired US-based logistics technology company Locus. The company stated that this move will speed up delivery processes and improve customer experience.
The acquisition comes in addition to Ingka Group’s $2.2 billion investment plan in the US, which is IKEA’s largest franchisee.
The group competes here with giants like Wayfair and Walmart, while also struggling with rising costs due to increasing import taxes.IKEA did not disclose the price of the deal; however, Locus’s valuation in 2021 was around $300 million.
AI-powered logistics transformation
IKEA aims to save up to €100 million annually thanks to Locus’s AI technology. The system optimizes delivery routes by grouping orders and reduces the time vehicles spend in traffic — currently, this planning is done manually at IKEA.
Ingka Group Digital Director Parag Parekh said the new system will offer customers more delivery options and live tracking, and will initially be piloted in the US and UK.
“For us, not only speed but also flexibility and traceability are important. All of this will provide a better customer experience,” he said.
It will maintain its independent structure
The acquisition was made by IKEA’s investment arm, Ingka Investments. Locus will continue to operate independently and work with customers outside of IKEA.
Locus’s investors included GIC, Alpha Wave, Tiger Global and Qualcomm Ventures.
Commitment to growth in the US
In the last five years, IKEA, which has shifted its focus to online sales, has started opening smaller stores in city centers in addition to its large store model.
In 2024, online Sales accounted for 28% of total retail revenue; this figure was 11% in 2019.
IKEA also continued its US investments last week by purchasing a $213 million building in Manhattan, New York.
Parekh said, “Despite macroeconomic uncertainties, we are committed to remaining in the US.”
