Ikea South Korea tests new store formats and invests in automated online fulfilment technology

Over the next three years, Ingka Group, the largest Ikea franchisee holding company, will invest ~€300 million into the Korean market. Ikea South Korea has used €11 million to boost the fulfilment of online orders in stores and try out different store formats.

It has implemented automation solutions in its Giheung store.

This involves the use of wireless controlled robots to store products in optimised locations. Upon receiving an order, these robots pick the products and transport them to ports where co-workers are stationed.

This reduces the manual labour of walking and picking for co-workers, allowing them to focus on quality and other related tasks.

The picked products are then moved to the automated packaging system, where a 3D scanner creates boxes that fit the product size, and the system automatically handles cutting, taping, weighing, and attaching invoices.

The new technology can process approximately 2,000 orders per day, and can pack 300 boxes per hour.

It also supports sustainable efforts by optimising energy and using existing stores. Ten robots use the same power as one vacuum cleaner, according to Ikea. The automated packing solution creates custom sized boxes from FSC certified cardboard.

“This is a great milestone in our omnichannel journey - both for Ikea South Korea and globally,” says Marcus Baumgartner, Global Head of Fulfilment & Services at Ingka Group.

“By revamping our stores and embracing new technology, we are able to support our co-workers while still providing inspiration for our customers and being closer to meeting their needs.”

2024 RTIH INNOVATION AWARDS

Automation solutions are a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, Retail Technology Show 2025, and Business France, celebrate global tech innovation in a fast moving omnichannel world.

It’s free to enter and you can do so across multiple categories.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.