IKEA Korea Introduces Automated Fulfillment System in Stores

IKEA Korea is strengthening its omnichannel capabilities by introducing an automated fulfillment system in its stores.

On the 12th, IKEA Korea announced that it has invested approximately 16.9 billion KRW to implement an automated fulfillment system at its Giheung store. Fulfillment refers to a service that handles the entire process from product preparation to packaging and delivery. By using existing stores as key fulfillment hubs and providing fast and accurate delivery services, the company plans to offer an enhanced omnichannel (a service that allows customers to purchase products both online and offline) shopping experience.

This fulfillment system introduction is part of Ingka Group’s global investment plan to invest about 300 million euros (approximately 430 billion KRW) in Korea over the next three years for store facility improvements for online order delivery and testing various customer touchpoints. Ingka Group operates IKEA retail stores in 31 countries worldwide, including Korea.

IKEA Giheung Store. (Photo by IKEA Korea)

The ‘automated logistics warehouse system’ uses wireless-controlled robots to store products in optimized locations and, when an order is placed, picks up the products and transports them to a port where workers are stationed. The picked products are then moved to the ‘automated packaging system,’ where a 3D scanner creates boxes tailored to the product size and automatically handles all processes including sealing, taping, and attaching shipping labels.

IKEA Korea plans to improve operational efficiency and enhance customer experience by introducing the automated fulfillment system. This system is about eight times more efficient than the method where employees pick products by walking around the store and can package more than 300 boxes per hour. Through this, the Giheung store will be capable of handling approximately 2,000 delivery orders per day within the store.

The system also contributes to reducing carbon emissions by optimizing energy and resource use. The 10 wireless-controlled robots applied in the ‘automated logistics warehouse system’ consume as much power as a single vacuum cleaner, demonstrating high energy efficiency. The ‘automated packaging system’ uses corrugated cardboard certified by the Forest Stewardship Council (FSC) to create boxes that fit the product size, minimizing excessive packaging and unnecessary resource consumption.

IKEA Korea aims to expand the introduction of automated fulfillment systems within stores to handle 1.5 times more delivery orders in 2030 compared to 2024. Furthermore, by considering inventory status, distance to delivery locations, and other factors, the company plans to strengthen store fulfillment functions by introducing an order management system that delivers products from the most suitable store, providing faster and more convenient delivery services.

Sueat Wan, Customer Fulfillment Manager at IKEA Korea, said, “While maintaining the store’s function of providing various home furnishing inspirations, IKEA Korea aims to utilize the automated fulfillment system as a fast and convenient omnichannel fulfillment hub. We will continue efforts to strengthen our omnichannel competitiveness so that more people can conveniently experience IKEA anytime and anywhere.”