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IKEA opens Kleinburg DC

 19 September 2019     HGO Staff 

KLEINBURG, Ontario – IKEA Canada has brought its new 550,000 square foot customer distribution centre here online. Created in partnership with logistics giant DHL, the retailer said it will further its ability to have its products in the right place, closer to its customers while providing increased capacity for future growth.

“Today's opening in Kleinburg is an important step as IKEA Canada continues its transformation journey to become the leading multi-channel home furnishings retailer,” Liz Wilson, IKEA Canada country customer fulfilment manager said in a statement. “By continuing to grow and optimize our distribution networks, we ensure the IKEA business is fit for long-term growth and we are better able to meet our customers' needs for convenience and speed in this fast-changing retail landscape.”

IKEA Canada’s senior management team – including president Michael Ward (second from left) – celebrate the opening of its new distribution centre in Kleinburg, Ontario.She added the Kleinburg customer distribution centre will focus on last mile delivery directly to customers’ homes and will complement the retailer’s four stores – as well as its existing distribution centre in nearby Mississauga – across the Greater Toronto Area.

Customers served by the new centre are expected to see shorter delivery lead times, which will support the retailer's expanded service offering, including new lower pricing for parcel and truck delivery.

The site has created approximately 120 indirect jobs and is operated by DHL Supply Chain, a specialist in contract logistics and part of Deutsche Post DHL.

“Through our deep industry and market expertise, we’re well-positioned to help IKEA increase productivity and meet the ever-changing expectations of every customer, every time,” said Jennifer Askew, DHL’s vice president of Canadian retail operations. “Our culture of continuous innovation also enables our team to bring productivity-enhancing technology and data-driven insight to drive even greater agility and flexibility needed throughout the retail industry.”

Wilson also noted IKEA wants to have a positive impact on people and the planet. “Opening this new distribution location in the Toronto area brings the retailer closer to the customer, reducing transport distances and emissions,” she said.

IKEA, the world’s largest home furnishings retailer, has also committed to having 100% electric or zero emission vehicles in service globally by 2025.

The new Kleinburg location is IKEA’s fourth customer distribution centre in Canada. The first opened in the Vancouver area last year. It also operates facilities in the Montreal and Toronto areas. The retailer’s network in this country includes 14 stores, an e-commerce virtual store, five pick-up and order points and 17 collection points.

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Home Goods and its accompanying newsletter - HGO This Week - covers the furniture, bedding, appliances, consumer electronics, accessories, lamps and lighting and floor coverings product sectors of the big ticket home goods market in Canada. HGO is also a forum for the dissemination of market research and hard-hitting articles on best practices for Canadian retailers.

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