Global furniture giant IKEA has acquired U.S.-based logistics technology firm Locus, in a strategic move aimed at making deliveries faster, smarter, and more cost-efficient as it ramps up investment in e-commerce operations. The deal, announced jointly by both companies, is part of a $2.2 billion expansion plan by Ingka Group, IKEA’s largest franchisee, to strengthen its presence in the U.S. market, where it faces stiff competition from Wayfair and Walmart amid rising import tariffs. Though the deal’s value was not disclosed, Locus was previously valued at $300 million during its last funding round in 2021.
IKEA said the acquisition is projected to save the company around €100 million ($117 million) annually by simplifying logistics and reducing delivery costs worldwide. Locus uses artificial intelligence (AI) to automate route planning, grouping orders and predicting optimal delivery paths — a process previously handled manually by IKEA staff. According to Parag Parekh, Chief Digital Officer at Ingka Group, the technology will also allow IKEA to offer more flexible delivery slots, real-time package tracking, and faster service, enhancing overall customer experience.
Initially, IKEA plans to pilot the Locus technology in the U.S. and the U.K. before rolling it out globally. Parekh emphasized that while speed is crucial, the greater value lies in flexibility, visibility, and improved customer satisfaction. Under the terms of the acquisition, Locus will continue to operate independently and maintain its partnerships with other clients. Prior to the deal, its investors included Singapore’s GIC, Alpha Wave, Tiger Global, and Qualcomm Ventures.
The acquisition marks another bold step in IKEA’s digital transformation journey. Known for its iconic blue warehouses and maze-like store layouts, IKEA has increasingly shifted towards urban and online retail models, with digital sales now accounting for 28% of its total revenue in 2024, up from 11% in 2019. The deal follows Ingka’s recent $213 million property purchase in Manhattan, reflecting the company’s long-term commitment to the U.S. market despite economic uncertainties and increased tariffs.