IKEA buys US logistics tech firm Locus in online growth push

Core Insights - IKEA has acquired U.S. logistics technology firm Locus to enhance delivery efficiency and support online sales expansion [1][2][3] Group 1: Acquisition Details - The acquisition of Locus is part of a broader $2.2 billion investment by Ingka Group in the U.S. market, where IKEA faces competition from Wayfair and Walmart [2] - Locus was valued at $300 million during its last funding round in 2021, although IKEA did not disclose the acquisition value [2][5] - Under the acquisition, Locus will operate independently and continue to serve clients beyond IKEA [5] Group 2: Operational Benefits - The acquisition is expected to simplify IKEA's logistics and reduce delivery expenses by approximately 100 million euros ($117.41 million) annually [3] - Locus employs artificial intelligence to optimize order grouping and route prediction, which currently relies on manual processes by IKEA staff [3][4] - The technology will allow IKEA to provide more delivery options and real-time tracking for customers, enhancing the overall customer experience [4] Group 3: Market Strategy - IKEA has shifted focus to online sales, which accounted for 28% of total retail sales in the 2024 financial year, a significant increase from 11% in 2019 [6] - The company is investing in smaller city-center stores to attract younger, urban shoppers [6] - The acquisition follows a recent purchase of a Manhattan building for $213 million, indicating continued U.S. expansion despite higher tariffs on furniture imports [7]