Wincanton has signed a five-year contract with IKEA Ireland to manage the retailer’s first Customer Distribution Centre (CDC) in the Republic of Ireland.
Located in Greenogue Logistics Park in south-west Dublin, the 280,000 sq ft warehouse will enable quicker customer fulfilment and better availability of IKEA products in the country, with delivery lead times reduced by more than half.
IKEA products have previously been delivered to consumers in Ireland via distribution centres in the UK. Locating the CDC in Ireland means IKEA is closer to the end consumer, supporting its sustainability strategy through a reduction in CO2 emissions.
The first deliveries are expected to leave the warehouse in early 2024. When fully up and running, the CDC will create 120 jobs across warehousing, logistics, and administration.
The contract builds on Wincanton’s growing relationship with IKEA, which has seen the Wincanton Group chosen as its long-term partner to operate a new multi-million-pound distribution centre in Dartford, Kent, alongside investments in electric vehicle technology for its home delivery services.
With IKEA secured as a major customer, Wincanton will also offer a shared user service from the Dublin facility to support its growth strategy in Ireland.
Carl Moore, Managing Director of eFulfilment at Wincanton, said:
“Our key role in the transformation and expansion of IKEA continues to grow and evolve.
“We look forward to bringing our unrivalled expertise and proven operational excellence in eFulfilment to the Republic of Ireland so IKEA can meet its customers’ needs quicker than ever before.”
Jakob Bertilsson, Country Customer Fulfilment Manager at IKEA UK and Ireland, commented:
"Establishing a distribution centre in Ireland is a significant step in further expansion in Ireland. This move supports our omnichannel strategy to cater to customers' shopping preferences while driving towards our ambitious goal of achieving 100% zero emission last mile delivery by 2025. We are excited to strengthen our partnership with Wincanton and look forward to bring IKEA closer to even more people in Ireland."
Separately, Wincanton has announced the appointment of John Pattullo OBE as a Non-executive Director of the Company with effect from 1 November 2023. Mr Pattullo will also be appointed as a member of the Company's Audit and Nomination Committees.
John Pattullo is currently Senior Independent Director of Redde Northgate plc, the FTSE250 supplier of integrated mobility solutions company, a position he has held since 2019. He was previously Chair of V Group until December 2020 and has served as Senior Independent Director and Remuneration Committee Chair of Electrocomponents plc (now RS Group plc), Chair of NHS Blood & Transplant, Chair of Marken Logistics and Chair of In Kind Direct, a Prince's charity.
John was Chief Executive Officer of Ceva Logistics Ltd, between 2007 and 2012. Before that, he worked for Exel plc/DHL where he led the EMEA logistics business and earlier held a number of senior global supply chain appointments with Procter & Gamble.
Sir Martin Read CBE, Chair of Wincanton, commented:
"We are very pleased to have secured someone of John's wide experience in consumer goods and logistics and as a non-executive across a range of other industries. He will be a great asset to the Wincanton Board."
John Pattullo OBE commented:
"I am looking forward to joining Wincanton. The company has an excellent blue-chip client base, a strong balance sheet and numerous exciting growth opportunities. I believe the business has real promise."
Mr Pattullo OBE currently holds 8,000 Wincanton plc shares and no further information in connection with his appointment is required to be disclosed pursuant to Listing Rule 9.6.13R.