New Ikea distribution centre to cut delivery times to three days

Ikea is opening a new distribution centre in Co Dublin to allow it to ramp up its delivery network across Ireland over the next five years.

The warehouse in Rathcoole will span 27,000sq m and will be large enough to accommodate more than a quarter of a million of the Swedish retailer’s famed Billy bookcases, although in practice the space will contain more than 9,000 different – mainly flat-packed – products.

The new facility, to employ more than 200 people, follows Ikea’s investment in six “plan and order” points, upgrades to the Ballymun store, and a collaboration with Tesco Ireland on collection services.

According to Ikea, the new distribution centre will see delivery times reduced to three days, one of the shortest delivery spans in Europe, as products will no longer be dispatched from the UK.

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Ikea plans for the centre to make 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.

Ikea’s customer fulfilment manager for Ireland, Jakob Bertilsson, described the opening of the distribution centre as a “key step in our ambitious expansion plans across Ireland”.

He stressed that this did not indicate Ikea was moving away from its traditional model of retailing, and said Ikea was “committed to – and are continually investing in – the future of our physical store in Dublin”.

Newly appointed junior minister at the Department of Enterprise, Emer Higgins, welcomed the opening of the new shipping facility and said it would “provide a boost for the local economy, creating 120 new jobs”.

[ Ikea to create 120 jobs and cut delivery times by opening new Dublin distribution centre in 2024 ]

She added that this was “positive news for its customers, significantly reducing Ikea’s delivery times and enhancing accessibility for its Irish customers”.

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She suggested the facility was “a testament” to the company’s commitment to sustainability.

“This building is one of the most energy-efficient logistic facilities in Ireland and will support Ikea’s transition to 100 per cent 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.”

The giant warehouse, with a Building Energy Rating (Ber) of A2, includes features such as rainwater harvesting and roof-based solar panels.

Ikea is also transitioning to exclusive zero-emissions home deliveries, which together with locating the distribution centre closer to its customers will result in significant reduction in CO² emissions and more sustainable deliveries, the company said.

From today, customers with Dublin eircodes will receive their home deliveries in zero-emission vehicles. Ikea has committed to ensuring all deliveries to customers across Ireland will be exclusively in zero-emission vehicles by August 2025.