Ingka Investments, the investment arm of the Ingka Group – the largest IKEA retailer – announced on October 7 the acquisition of the US logistics software company Locus. According to a press release, this strategic investment is intended to strengthen IKEA's digital capabilities and give the company greater control over the delivery process.
In today's retail landscape, customers expect seamless home delivery and regard the complex digital systems that enable this as a given, Ikea argues. So far, the company has relied on multiple external providers for these important services. The acquisition of Locus is seen as a significant step by
the Ingka Group to make shopping and delivery for customers smoother.
Increase efficiency in the supply chain
Locus offers, according to the company, an advanced, AI-powered platform for logistics management with sophisticated route optimization, real-time tracking, and intelligent use of vehicles and resources. By integrating these features, the Ingka Group aims to increase efficiency across the entire supply chain—from capacity planning and optimization to the last mile. The acquisition is also intended to support the goal of building a faster and smarter distribution network.
Tolga Öncü, Head of Ikea Retail (Ingka Group):
“This acquisition fits perfectly with our commitment to improving
the customer journey at every touchpoint. By bringing Locus's technology into the company, we take control of a crucial element of our supply chain—and can thus deliver faster and more flexibly to the many.”
According to the company, online sales already accounted for 28 percent of Ikea's total revenue in fiscal year 2024, up from 11 percent in 2019. The integration of Locus's technology is intended to strengthen Ikea's ability to manage this growth and complement earlier strategic technology investments such as Made4net (to improve warehouse management) and TaskRabbit (to expand furniture assembly services).
Nishith Rastogi, Founder & CEO of Locus:
“Joining the Ikea family is a historic milestone for Locus and our customers. This partnership preserves our independence and secures our future, while at the same time giving us the reach and resources to support our global enterprise customers with unparalleled research and development. To kick off this new phase, we will significantly expand our product, engineering, and sales teams to build a legacy of innovation and impact over decades to come – not just for years.”
According to the press release, after the acquisition Locus will remain operationally independent and continue to expand services for partners outside the Ingka Group.
