IKEA opens its first Distribution Centre in 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.

Reducing greenhouse gas emissions

This new distribution centre also underscores IKEA’s firm commitment to sustainability. The building is one of the most sustainable and energy-efficient logistics facilities in Ireland. It has a Building Energy Rating (BER) of A2 and includes features like rainwater harvesting and roof-based solar panels.

IKEA is also transitioning to exclusive zero emission 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.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.

As the first step to advance towards this goal, 17 electric vans will deliver IKEA goods across the country, with the number of zero emissions vehicles doubling by August 2025. As of now, two zero emission vehicles will be based in Cork, two in Athlone, four at the Ballymun store, and nine at the new distribution centre. These 17 zero emission vans will replace diesel delivery vehicles, resulting in an estimated annual saving of 283,000 litres of diesel, equivalent to reducing carbon dioxide (CO₂) emissions by 750 tonnes per year.

To support the transition to zero emission deliveries, IKEA has established an extensive electric vehicle charging network at the distribution centre, comprising of three rapid charge points for quick top-ups and 20 overnight charging points for full recharges.

IKEA’s 8MW wind farm near Manorhamilton, Co. Leitrim, will also support the retailer’s transition to zero-emission deliveries and use of 100% renewable energy to power the distribution centre and IKEA’s flagship store in Ballymun, Dublin. It is projected that the wind farm produces about twice the amount of electricity required by the new distribution centre and the Ballymun store.

Furthermore, to secure even more renewable energy for the future, Ingka Investments, the investment arm of the company, has invested in a 10GW offshore wind project portfolio in Ireland and UK.

The launch of the logistics facility is operated by logistics firm and longstanding IKEA service provider, Wincanton.

James Wroath, CEO at Wincanton, added: “Wincanton is excited to mark this key milestone in the expansion of IKEA in Ireland, who will benefit from our unrivalled expertise and proven operational excellence in eFulfilment. The opening of this new, state-of-the-art distribution centre just outside of Dublin further strengthens a partnership focused on our shared goals of meeting IKEA’s customers’ needs quicker than ever before.”

Deliveries will be carried out by XPO Logistics, supporting IKEA on its journey to only deliver by zero-emission vehicles.

Dan Myers, Managing Director for UK and Ireland at XPO Logistics, said: “This is a huge milestone for IKEA in what is an important market for the business. The investment is a demonstration of IKEA’s confidence in Ireland. As a long term partner, we are committed to working together to create a better everyday life for many people which is also sustainable and aligned with our combined environmental commitments.”