IKEA Acquires Logistics Tech Firm Locus to Enhance Delivery Operations
Swedish furniture retailer IKEA has acquired U.S. logistics technology company Locus in a strategic move to improve delivery efficiency and customer experience. The acquisition, announced on October 8, 2025, will enable IKEA to streamline its logistics operations and reduce delivery expenses by an estimated €100 million annually. This investment supports IKEA's broader online growth strategy as the company continues to expand its digital presence and compete with major retailers like Wayfair and Walmart.
IKEA has taken a significant step in enhancing its delivery capabilities by acquiring U.S. logistics technology firm Locus, as announced by both companies on Tuesday, October 8, 2025. This strategic acquisition represents a key component of the Swedish furniture retailer's ongoing efforts to improve customer experience through more efficient and flexible delivery services.
Strategic Rationale Behind the Acquisition
The acquisition of Locus aligns with IKEA's broader strategy to expand its online sales and improve delivery efficiency. According to Parag Parekh, chief digital officer at Ingka Group, IKEA's largest global franchisee, the technology will transform how the company manages its delivery operations. Currently, IKEA workers manually plan delivery routes, but Locus uses artificial intelligence to group orders and predict optimal routes that minimize time spent in traffic.
Expected Benefits and Implementation
IKEA anticipates significant cost savings from this acquisition, estimating a reduction in delivery expenses by approximately 100 million euros ($117.41 million) annually on a global scale. Beyond financial benefits, the technology will enable IKEA to offer customers more delivery windows and options, provide live package tracking updates, and deliver products faster. The implementation will likely begin with pilot programs in the United States and United Kingdom before expanding globally.
Broader Business Context
This acquisition comes as part of Ingka Group's substantial $2.2 billion investment push in the United States, where IKEA faces competition from retailers like Wayfair and Walmart. The move also coincides with challenges posed by higher tariffs on furniture imports. Despite these macroeconomic uncertainties, IKEA remains committed to its U.S. expansion, as evidenced by recent investments including a $213 million Manhattan property acquisition.
Online Growth Strategy
The Locus acquisition supports IKEA's ongoing shift toward digital commerce. Over the past five years, the company has increasingly focused on its online business while investing in smaller city-center stores to target younger, more urban customers. Online sales have grown significantly, accounting for 28% of total IKEA retail sales in the 2024 financial year, up from just 11% in 2019.
Future Outlook
Under the acquisition terms, Locus will continue to operate independently and serve clients beyond IKEA. This approach allows the technology company to maintain its innovation momentum while providing IKEA with cutting-edge logistics capabilities. The acquisition represents a strategic response to evolving consumer expectations for faster, more transparent, and flexible delivery options in the competitive furniture retail market.
