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Ikea plans to double size of Illinois distribution center


Ikea has announced it plans to double the size of its planned distribution center here as part of its strategy to serve customers in the Midwest.

The company recently submitted plans to the city of Joliet for a second facility that will be similar in size to a previously announced 1.4-million-square-foot distribution center. That facility will be on 72 acres at the Laraway Crossings Business Park and is expected to open in in the summer of 2017.

The proposed second building would be on a 62-acre site that Ikea plans to purchase just west of the first building.

The combined distribution hub will serve Ikea stores throughout the Midwest and also handle customer fulfillment.

The company said that the combined facility is expected to handle about 10,000 individual items sold at Ikea stores worldwide. Its central location will allow it to receive product from Asia and Europe that comes into the U.S. at West and East coast ports.

The company also said the facilities will benefit from their proximity to a nearby railroad intermodal facility that is expected to offer further long-term transportation options.

“On the heels of securing all approvals for our first terminal in Joliet and moving forward with plans to construct that building, we are fortunate to have the opportunity to propose another building, on the adjacent property,” Ikea U.S. Chief Financial Officer Rob Olson said in a statement.


Source: Furniture Today

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