IKEA’s first Irish Distribution Centre to reduce lead times

IKEA Ireland is has opened a state-of-the-art distribution centre in Rathcoole, Co. Dublin, marking a significant milestone in the company’s expansion within Ireland.

This new facility, employing over 200 people, follows investments in six plan and order points, upgrades to the Ballymun store, and an innovative collaboration with Tesco Ireland on affordable collection service, all to bring IKEA closer to customers across the Republic of Ireland.

 The new distribution centre will result in IKEA’s business in Ireland having one of the shortest delivery times in Europe. Before now, IKEA deliveries to Irish consumers required dispatch from the UK. With the inauguration of this new multi-million-euro facility in Ireland, delivery times will reduce to just three days. This strategic move not only brings IKEA products closer to its Irish customers but also significantly improves product availability throughout Ireland.

The vast distribution centre is over 27,000 square metres, has a storage capacity of 20,000 cubic metres – equal to over 258,000 flatpack BILLY bookcases or double the size of Croke Park pitch – and is capable of housing up to 9,000 different product lines, spanning across almost every product in the IKEA range.

IKEA expects the distribution centre to be making more than 300,000 deliveries in the first year of operation, with that figure almost doubling to nearly 600,000 within five years. Eventually the plan is to be able to deliver up to three million items a year from the centre.

 “The opening of Ireland’s first IKEA distribution centre will greatly benefit our customers through faster and more reliable deliveries,” said Jakob Bertilsson, Country Customer Fulfilment Manager, IKEA Ireland and UK. “It marks a key step in our ambitious expansion plans across Ireland. We remain committed to – and are continually investing in – the future of our physical store in Dublin, but we want people to enjoy the IKEA experience no matter where they choose to engage with us, whether through our full-size store, plan and order points, or online. This new distribution centre will greatly enable this, by increasing availability of our products and reducing lead times,” he added.

Minister of State for Business, Employment and Retail, Emer Higgins TD, said: “IKEA’s new distribution centre in Rathcoole will provide a boost for the local economy, creating 120 new jobs. It is also positive news for its customers, significantly reducing IKEA’s delivery times and enhancing accessibility for its Irish customers. This state-of-the-art facility is also a testament of IKEA’s unwavering commitment to sustainability. This building is one of the most energy efficient logistic facilities in Ireland and will support IKEA’s transition to 100% zero emission deliveries by August 2025. There is no doubt IKEA’s dedication to become climate positive sets a commendable standard for the entire retail industry.”