IKEA invests £31.5 million to make UK fulfilment more efficient and reduce packaging waste
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IKEA is investing £31.5 million across its Peterborough and Doncaster Customer Distribution Centres (CDC) to make online fulfilment more efficient and sustainable.In Peterborough, new technology is packaging customer orders to size and reducing material usage by up to 30 percent, by preventing waste from oversized boxes and filling paper. In Doncaster, IKEA is trialling a new regional fulfilment capability, serving customers in the north and Scotland from a closer location to them. Together, the investments will strengthen IKEA's UK fulfilment network as more customers choose to shop online, with online sales accounting for almost half (43.3 percent) of IKEA's total UK sales in financial year 2026. Technology upgrades transform Peterborough CDC IKEA is investing £30 million in new technology for its Peterborough CDC, with the upgrades taking place over a two-year period. As part of this investment, IKEA has launched new PackSize technology to prevent waste from oversized cardboard boxes and filling materials by packaging customer orders to size. On average, the technology reduces material usage by up to 30 percent and void fill by up to 60 percent. The technology is expected to increase the share of parcels processed through automation at the Peterborough CDC from around half (47 percent) today to three-quarters (75 percent) in 2027, helping the fulfilment team prepare...
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