Swedish furniture and homeware giant IKEA has secured its first New Zealand warehouse, months after construction began on its debut store here.
IKEA has agreed to develop and lease a 20,000-square-metre purpose-built warehouse from Auckland Airport. It will act as the official hub for its under-construction Sylvia Park store andonline operations.
IKEA says its warehouse will be able to hold approximately 403,704 of its Billy bookcases.
The warehouse is expected to be operational in early 2025, ahead of the opening of its first store in late 2025.
“Construction has begun on our store at Sylvia Park, and it’s fantastic to now progress further in bringing the IKEA range to New Zealand by securing a purpose-built warehouse,” said Fabian Winterbine, IKEA Australia and NZ expansion manager.
“This warehouse will support both the IKEA store and e-commerce, ensuring IKEA products are in strong supply, available and accessible for the many New Zealanders.”
Construction on IKEA’s Sylvia Park store began in June this year. The shop is planned to be the size of three rugby fields.
The warehouse will be located at The Landing Business Park in Māngere, South Auckland, approximately 15km from the site of its Sylvia Park store.
The building, which is targeting a 5 Green Star rating, will have 19,600sqm of warehouse space plus 500sqm of office space.
The Landing Business Park, which comprises more than 100 hectares of planned development land, is already home to some of the world’s largest logistics, and third-party logistics, companies including Toll, DHL, Fonterra, Coca-Cola Amatil, Bunnings and Foodstuffs North Island.
IKEA’s lease term with Auckland Airport is for 10 years, but IKEA wouldn’t say if it planned to buy its own warehouse once that lease was up or extend it.
“For now, our focus is on building our first IKEA store and ensuring we have a fully operational warehouse as we progress towards opening IKEA in New Zealand,” Winterbine said.
“Once IKEA is established in New Zealand, we will look to expand in a way that makes sense and meets local demand.”
Daniel Byrne, head of property development at Auckland Airport, said it was excited to have been selected as IKEA’s development partner and to be playing a part in its long-awaited entry to the New Zealand market.
“As a leading global brand, IKEA will be a great addition to The Landing Business Park, further enhancing the strength of our industrial and logistics portfolio. We look forward to welcoming them once the facility is complete.”
Recruitment is yet to begin for IKEA warehouse co-workers, the company said, but it expects approximately 35 roles to be advertised initially.
Ingka Group, whose core business is IKEA Retail, announced in December 2018 that it would open a New Zealand store, having been granted exclusive rights to explore expansion opportunities in the country.
Ingka controls 379 IKEA stores including across 31 markets, welcoming 657 million visitors to its stores, according to its website.
Naylor Love was appointed construction project manager of the three-level, 34,000sqm, Sylvia Park store with ground-floor car parking. The store will sell the latest design and home furnishing.
A restaurant serving IKEA’s famous Swedish meatballs and hotdogs is also planned when the store opens.
IKEA said it plans to visit almost 1000 Kiwi homes before it enters the market to tailor its store offerings to the local consumer.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.