Ingka Group, which is the largest franchisee of Ikea, has acquired Locus, an artificial intelligence (AI)-heavy logistics technology company based in the U.S.
The move is expected to bolster the Swedish-born furniture giant’s expanding home-delivery plans. This strategic acquisition comes at a time when Ikea is seeing more and more of its business shift online. According to the company, 28% of sales now originate online.
Ikea ranks No. 6 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region by their annual ecommerce sales. There, Digital Commerce 360 categorizes it as a Housewares & Home Furnishings retailer.
What Ingka acquiring Locus means for Ikea
Historically, Ikea has relied on a patchwork of third-party providers to deliver — and sometimes assemble — its products.
According to Ikea, Locus offers a sophisticated AI-powered logistics management platform, featuring advanced route optimization and real-time tracking, as well as access to vehicles and other resources. By integrating these capabilities, Locus will better enable Ingka Group to enhance efficiency across the supply chain — from capacity management and optimization to last-mile execution.
“Our vision is to create a better everyday life for the many, and that includes delivering products when and how customers want them,” said Parag Parekh, global chief digital officer for Ikea Retail (Ingka Group), in a company press release. “This acquisition strengthens the digital capabilities required to meet rising customer expectations, while ensuring the quality and reliability Ikea is known for.”
How Locus may help Ikea
Ram Ganeshan, the D. Hillsdon Ryan professor of business and professor of operations and supply chain at William & Mary’s Raymond A. Mason School of Business, told Digital Commerce 360 that the acquisition made sense for Ikea.
“Ingka’s purchase of Locus is a smart move to bring the ‘brains’ of last-mile delivery in-house,” Ganeshan explained.
He added that with the logistics firm’s AI-driven software, Ikea can offer tighter delivery windows, more reliable delivery-time estimates and fewer failed appointments while taking real cost out of the system.
“It also completes an end-to-end digital chain — from warehouse to doorstep — that lets Ikea set the playbook for partners,” Ganeshan said.
He noted that because Locus remains independent, the B2B upside extends beyond Ikea.
“It can evolve into a reference platform for heavy, scheduled home delivery across retail,” Ganeshan stated.
AI’s role in Locus’ and Ikea’s delivery capabilities
David Welsh, vice president of fulfillment at the third-party logistics (3PL) company Radial, said bringing Locus’ AI into the core delivery stack should give Ikea customers more precise delivery windows and better live tracking.
Welsh noted that delivery reliability is important to customers throughout the year — but especially heading into the holiday peak season. Welsh said Radial’s research found 66% of consumers would give up a 5% discount and one-third would pass up a 20% discount to guarantee their delivery window, proving that reliability is a greater driver than cost.
“Overall, this acquisition will pull more delivery volume onto an Ikea-controlled platform, and it will pressure brands to bring their own orchestration up a notch,” Welsh stated.
He added that across its ecosystem Ikea should expect tighter service levels around ship-confirm times for social and marketplace orders.
“TikTok, for instance, rewards same-day confirmations — which means retailers need 3PLs that can prioritize by channel logic, not just first-in, first-out,” Welsh said.
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