IKEA officially opens local warehouse for countrywide product distribution
IKEA New Zealand has officially opened their external warehouse at The Landing Business Park, Māngere, following a blessing of the building by Te Ākitai Waiohua.
Logistics and test shipments are underway for the completed warehouse, which will begin receiving products in May 2025.
IKEA New Zealand has officially opened their external warehouse at The Landing Business Park, Māngere, following a blessing of the building by Te Ākitai Waiohua. The 20,000 square-metre warehouse, designed and built by Auckland Airport, will ensure IKEA products can be stored locally for countrywide distribution via the IKEA Sylvia Park store.
On track to receive a 5 Green Star Certified Rating from the New Zealand Green Building Council, the warehouse will also have EV charging infrastructure for co-workers and electric delivery vehicles. Cardboard, timber and plastic waste from replenishment processes will be sorted onsite for recycling.
The external warehouse is expected to accommodate approximately 8,000 – 10,000 cubic metres of inventory each year. Multiple full 40-foot shipping containers are expected to be transported daily from the warehouse to the IKEA Sylvia Park store to ensure products are always readily available.
IKEA New Zealand will move around 100,000 cubic metres of stock in its
first year alone.
The first test shipment was conducted in November to plan for accurate forecasted lead times and to ensure that products comply with New Zealand standards. The various products contained in the shipment will be assembled for use across the warehouse office.
Adrian Pidgeon, Fulfilment Manager for the IKEA New Zealand Project says the completion of the first IKEA New Zealand external warehouse marks a pivotal milestone in the company’s market entry.
“It has been the result of significant collaboration between IKEA, our construction partners Colliers and the Auckland Airport team. With the building now complete, many parts of the business are working together to ensure a great IKEA customer experience for New Zealanders supported by readily available products, no matter where they are located or how they choose to shop.”
The external warehouse is projected to accommodate between 8,000 and
10,000 cubic metres of inventory each year.
The decision to establish a separate warehouse was driven by the Sylvia Park store site’s limitations and given the forecast for the first five to ten years, extra room was required to accommodate the volume. Given the lead time into New Zealand, this secures the right amount of cubic and safety stock that Ikea needs to support its customers.
Mr Pidgeon says forecasts indicate that IKEA New Zealand will move around 100,000 cubic metres of stock in its first year alone, with year-on-year growth expected beyond March 2026. The external warehouse is projected to accommodate between 8,000 and 10,000 cubic metres of inventory each year, ensuring a reliable supply of products.
However, with two facilities operating in Auckland, effective logistics management is crucial. Both buildings will be approved as transitional facilities through the Ministry for Primary Industries, allowing goods to be received directly. Maintaining product availability will require daily stock movements between the warehouses.
“We’re predicting three to four 40-foot trailer loads per day moving between the two facilities. This movement will be essential for replenishing stock at Sylvia Park,” Mr Pidgeon says.
Multiple full 40-foot shipping containers are expected to be transported daily from the warehouse to the IKEA Sylvia Park store.
Additionally, a proportion of inventory stored at the external warehouse will be used to fulfil customer orders directly. Online and in-store purchases of specific product ranges will be picked and dispatched straight from Māngere to customers’ homes, reducing pressure on the retail store’s logistics.
Auckland’s traffic conditions pose a key challenge for daily stock transfers. Mr Pidgeon has had the pleasure of being in Auckland a few times, and “it’s certainly busy at certain times of the day”. They’re currently working through what IKEA’s operational hours will look like to minimise the impact of congestion, potentially operating at different hours of the day to optimize efficiency.
Beyond local transport logistics, IKEA’s global supply chain strategy plays a role in sustainability. “One of the biggest things we’ve done in the supply chain further upstream is to reduce the need for wooden pallets.
“All products entering New Zealand arrive on paper pallets, significantly lowering our carbon footprint, improving fill rates, and reducing the number of required shipments.”
The company will also soon confirm its local delivery providers but has already committed to ensuring that all last-mile deliveries within Auckland will be carried out using zero-emission vehicles.
“From day one, we are pushing for zero-emission delivery. We want to reduce our carbon footprint as much as possible, with an aim to expand our sustainable logistics beyond Auckland over time.”
Daniel Byrne, Head of Property Development at Auckland Airport, said, “We’re pleased to officially welcome IKEA to The Landing Business Park. IKEA has been a fantastic partner, and we look forward to continuing to support their operation as they establish in New Zealand.”
IKEA New Zealand will have two dedicated supply streams from Malaysia and China, with products coming from all over the world. The flatpacks will also play a part in enabling logistical efficiency. Their design, which aims to use space in the most efficient way possible, means more articles can be transported per shipment.