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From Home Furnishing Business

Ikea to Build 2nd DC in Illinois

Home furnishings retailer Ikea plans to build a second distribution center in Joliet, Ill.

The retailer announced earlier that it was planning to building a 1.4-million-square-foot distribution center set to open in Summer 2017. The proposed new center will be the same size and will sit on 62 acres the company is looking to purchase adjacent to the first site.

This combined distribution hub will serve the inventory needs of Ikea stores throughout the Midwest, as well as customer fulfillment. Goods received by the facilities will reflect the nearly 10,000 items currently sold at all the retailer’s stores.

“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,” said Ikea U.S. CFO Rob Olson. “We are pleased to consolidate our long-term Midwestern distribution operations at what will be our Midwestern hub in Joliet, and appreciate the City’s support for this project.”

This project will represent Ikea’s fifth significant investment in Illinois. In addition to the already planned distribution center and this new proposed terminal, there are two Ikea stores in the Chicago area, one each in Bolingbrook, Ill., and Schaumburg, Ill. The company also announced last year that it was purchasing a 49-turbine wind farm in Hoopeston, Ill., that is on track to be operational this spring.

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