Ikea to use new Sydney distribution centre to power expansion in online shopping and home delivery

Ikea’s Australian arm has recently signed off on a new distribution centre in Western Sydney which the company hopes will underpin plans to develop its online shopping business, offer more home delivery options and launch more small-format pick-up stores. David Hood, Ikea’s country manager in Australia, has been quoted by local media as saying that the new $150m, 70,000 square-metre distribution centre is due for completion by mid-2017.

According to an interview that Hood gave to news.com.au, the distribution centre will allow Ikea to store a greater range and volume of products, create efficiencies, reduce delivery times, and provide pick-up and delivery services direct to the customer. And once the centre is operation, Ikea will be able to roll out its online shopping platform.

“This is really the catalyst to bring Ikea to another level for the consumer,” Hood was quoted as saying.

In an interview that Hood gave in July, the Ikea manager said that the company was looking to have two new distribution centres – the one in Sydney (which has now be purchased) and one in Melbourne – as well as another four or five megastores.

Hood also revealed that Ikea was looking at the idea of delivering not only home furnishing but also the company’s famous Swedish meatballs. “There is definitely the possibility to deliver food,” he was quoted as saying. “The number of meatballs we sell is vast, and food is a big part of Ikea’s strategy globally over the next few years.”