Ikea Group’s first distribution centre opens in the Middle East

RetailME Bureau

The Ikea Group has launched its first distribution centre in the Middle East through which it will supply products to its seven stores across the Gulf region, while supporting the company’s regional expansion strategy.

Located in Dubai South, the new unit boasts 1.07 million sqft of storage space. The structure is composed of 120,000 cubic meters of racking, plus eight levels of storage distributed across two modules of operations.

“We are excited to welcome Ikea as part of our Dubai South community,” says Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation. “This facility represents one of the best-in-class examples of an efficient and effective distribution solution. At Dubai South, we are ideally placed to support companies of all sizes in meeting their logistical challenges. We do so by offering purpose built, fully customisable solutions, giving them the freedom to operate and grow their businesses in the best way possible.”

“The new distribution centre will enable the company to deliver fast-moving products more efficiently to stores across the GCC, lowering handling costs as well as shipment times,” adds Abdeldaziz Kadri, managing director of Ikea distribution centre Dubai.

The new Ikea distribution centre is already the workplace for more than 200 employees, and is generating many opportunities for local suppliers. They are working together with the aim to improve product availability in Ikea stores, maximising customer satisfaction.

The seven Ikea stores in the GCC include two in the UAE (Dubai and Abu Dhabi), one in Doha (Qatar), three in Saudi Arabia (Riyadh, Jeddah and Dhahran) and one in Kuwait City (Kuwait).