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Ikea South Korea tests new store formats and invests in automated online fulfillment technology — Retail Technology Innovation Hub

Over the next three years, Ingka Group, the largest holding company of Ikea franchisees, will invest around 300 million euros in the Korean market. Ikea South Korea has spent 11 million euros to increase the processing of online orders in its stores and to test different store formats.

It has implemented automation solutions at its store in Giheung.

Wirelessly controlled robots are used to store products in optimized locations. After an order is received, these robots pick up the products and transport them to the storage locations where employees are stationed.

This reduces the manual workload of employees caused by walking and picking, allowing them to focus on quality and other related tasks.

The picked products are then forwarded to the automated packaging system, where a 3D scanner creates boxes that fit the product size. The system also automatically cuts, glues, weighs and attaches invoices.

The new technology can process about 2,000 orders per day and pack 300 boxes per hour.

It also supports sustainable efforts by optimizing energy and using existing stores. Ten robots use as much electricity as a vacuum cleaner, according to Ikea. The automated packaging solution creates custom-made boxes from FSC-certified cardboard.

By Bronte

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