Ingka Group buys Locus

Ingka Group buys Locus

Ingka Group, the largest global franchisee of IKEA, has acquired U.S. logistics technology firm Locus, marking a significant step in the retailer's digital transformation and expansion into the online market. The acquisition aims to simplify logistics operations and reduce delivery expenses by an estimated 100 million euros ($117.41 million) annually on a global scale.

The deal, announced on October 7, 2025, sees Locus continuing to operate independently while also providing services to other clients beyond IKEA. Locus' artificial intelligence-driven technology will enable IKEA to optimize delivery routes, predict traffic patterns, and enhance customer experience through improved delivery tracking and additional options.

Ingka Group's chief digital officer, Parag Parekh, emphasized that the acquisition will not only speed up deliveries but also provide flexibility and real-time tracking, ultimately driving a better customer experience. The technology is expected to be piloted in the U.S. and UK before being rolled out globally.

The acquisition comes as IKEA continues its push into the U.S. market, despite increased tariffs on furniture imports. In 2024, online sales accounted for 28% of IKEA's total retail sales, up from 11% in 2019, reflecting the company's growing focus on digital channels. The acquisition of Locus is part of a broader strategy to enhance IKEA's online capabilities and compete more effectively with rivals such as Wayfair and Walmart.

The value of the acquisition was not disclosed, but Locus was valued at $300 million in its most recent funding round in 2021. The deal underscores Ingka Group's commitment to investing in the U.S. market, despite macroeconomic uncertainties. The acquisition is expected to be completed in the coming months, with Locus continuing to serve its existing clients.