IKEA's largest franchisee, Ingka Group, invests approximately Euro 11 million to add automation technology at IKEA South Korea, aiming to shorten delivery times, improve working conditions for co-workers, and enhance the overall customer experience.
As part of this initiative, IKEA Korea has implemented automation solutions at the IKEA Giheung store to address growing delivery demands driven by e-commerce expansion. The store now uses wireless-controlled robots to optimize product storage and retrieval. When an order is placed, these robots pick the products and transport them to designated ports where co-workers manage the final steps. This reduces the need for manual labor and allows co-workers to focus on quality control and related tasks.
Image: IKEA Giheung store uses wireless-controlled robots to optimize product storage and retrieval / IKEA
In addition to robotic automation, the IKEA Giheung store has introduced an advanced automated packaging system. A 3D scanner creates custom-sized boxes for each order, ensuring minimal waste. The system automatically cuts, tapes, weighs, and attaches invoices to the boxes in a single, seamless process. This packaging solution is both efficient and sustainable, as it uses FSC-certified cardboard to minimize over-packaging and reduce resource use.
The automation technology implemented at the IKEA Giheung store can process approximately 2,000 orders per day, increasing picking efficiency by eight times compared to traditional methods. The system can also pack 300 boxes per hour, further speeding up fulfillment. The robots are energy-efficient, with 10 robots consuming the same power as a single vacuum cleaner, contributing to IKEA's broader sustainability goals.
This investment is part of Ingka Group’s larger plan to invest Euro 300 million in the Korean market over the next three years.
