IKEA Plans Northwestern Distribution Center

Furniture World Magazine

IKEA, a leading home furnishings retailer, announced plans for an approximately one million square-foot distribution center on 65 acres at the Frederickson Industrial Area, in unincorporated Pierce County, WA. This distribution center will allow IKEA to receive goods at the Port of Tacoma, to manage its inventory and to distribute product to stores throughout North America, with a focus on IKEA stores in the Pacific Northwest. The first phase of the project consists of an 834,000 square-foot facility to be operational by Spring 2008, with a potential future expansion of approximately 220,000 square feet after the initial building is up and running. Besides jobs created during construction, approximately 150 coworkers will join the IKEA family when both phases of this Northwestern Distribution Center are complete. Additionally, IKEA will provide property tax revenue for local governments and schools. The goods received through the Port of Tacoma will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores. With more than 1,300 suppliers in 54 countries around the world, IKEA globally transports products to its stores through regional distribution centers. This Tacoma Distribution Center will provide the primary inventory to four IKEA stores in Western Canada, one in Renton, WA, and stores that are planned to open next year in Draper, UT and Portland, OR. The facility also will be able to supply other stores across the country as needed. “We are thrilled about the opportunity to locate our Northwestern Distribution Center in the Frederickson Industrial Area,” said Keith Keller, IKEA North America’s Distribution Services president. “This location’s proximity to the Port of Tacoma offers the long-term capacity, infrastructure and geography that we were seeking to complement our distribution presence in North America. A Tacoma-based distribution center will help IKEA ensure our stores continue to offer well-designed and functional home furnishings at affordable prices.” There currently are more than 235 IKEA stores in 34 countries, including 39 in North America (11 in Canada; 28 in the U.S.), where the company plans to open approximately three to five stores a year. U.S. stores are being planned in: Brooklyn, NY; Draper, UT; Dublin, CA; Orlando, FL; Portland, OR; Round Rock, TX; Somerville, MA; Sunrise, FL; and West Chester, OH. Other distribution centers in North America include facilities in: Bristol, PA; Brossard, QC; Perryville, MD; Tejon, CA; Vancouver, BC; and Westampton, NJ. Another facility is under construction in Savannah, GA. Since its 1943 founding in Sweden, IKEA has offered a wide range of home furnishings and accessories of good design and function, at low prices so the majority of the people can afford them. IKEA has been ranked in FORTUNE’s annual “100 Best Companies to Work For” List (two years in a row), Working Mother magazine’s annual list of “100 Best Companies for Working Mothers” (four years in a row) and Training magazine’s annual “Top 100” ranking of companies that excel at human capital development (four years in a row). IKEA incorporates environmentally friendly and socially responsible efforts into day-to-day business, and continuously supports initiatives that benefit causes such as children and the environment. To visit the IKEA Web site or for information about working at IKEA, please go to http://www.IKEA-usa.com.