Ingka Group, the largest owner and operator of IKEA stores in 31 countries, has taken a step towards accelerating its e-commerce operations with the acquisition of Made4net, a leading US-based supply chain software solution provider. The move aims to enhance Ingka Group's capabilities in serving online shoppers and improving the overall customer experience.
Ingka Investments, the investment arm of Ingka Group, finalized the acquisition of Made4net, which is expected to result in the largest implementation of a Warehouse Management Solution (WMS) in the world, Ingka said in a statement.
By integrating Made4net's fulfilment operations system, Ingka Group seeks to improve the omnichannel experience for both customers and co-workers in its stores. The company aims to become a leader in the rapidly evolving e-commerce landscape and meet the growing demand for efficient warehouse and fulfillment solutions within the retail sector.
"We are committed to continuously improving our business to meet the evolving needs of our customers," said Wim Blaauw, Chief Digital Officer (CDO) for Ingka Group. "Implementing digital solutions that provide speed and agility is crucial in supporting the new omnichannel reality we operate in."
Ingka Group's Head of Retail, Tolga Öncu, emphasized the need for a more accurate and efficient fulfilment operations system that can better handle customer orders. "Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to engage with us," Öncu stated.
Made4net will continue to operate as an independent subsidiary based in New Jersey, U.S., serving its existing customer base.
"We are thrilled to be joining forces with Ingka Group and contributing to the enhancement of their fulfilment operations system," commented Duff Davidson, CEO of Made4net. "By leveraging Made4net's cutting-edge solution, we aim to deliver faster and more accurate order fulfilment solutions, ultimately benefiting both IKEA customers and co-workers."
Goldman Sachs Bank Europe SE acted as the financial advisor to Ingka Investments B.V. in connection with the transaction.
Recently, Ingka Group announced an investment of more than Euro 2 billion ($2.2 billion) in omnichannel growth in the United States over the next three years. In the first phase, the company anticipates opening eight new stores and nine plan and order points, creating over 2,000 jobs. In addition, IKEA US has also announced new locations in San Francisco, California and Arlington, Virginia, set to open this summer.
The US investment push ties into Ingka Group’s continued focus on omnichannel growth and expansion across the world. In Spain the company is investing Euro 150 million in opening many new locations around the country by 2025. It is expanding substantially in the UK and London, where it will open a city store on Oxford Street – its second in the capital. In Austria, in just three years, the biggest IKEA retailer has increased the number of stores and planning studios from 8 to 45, making IKEA more accessible than ever before there.
Ingka Group will also explore new opportunities in clean energy, circularity and affordable housing around the U.S. As IKEA works toward its goal to be climate positive by 2030, it will increase solar and geothermal technology in locations whenever possible, transition to EV trucks to support fulfillment and delivery, and reduce waste.
With IKEA retail operations in 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales.
