IKEA is investing £31.5 million in its customer distribution centres in Doncaster and Peterborough, with the changes aimed at making online orders quicker and more sustainable.
The biggest local boost comes in Doncaster, where £1.5 million is funding a new regional fulfilment operation. It is already handling orders for customers in the Gateshead, Edinburgh and Glasgow areas, with Sheffield planned next.
The move means those orders can be dispatched from Doncaster rather than Peterborough. IKEA estimates this will cut delivery emissions by around 280 tonnes of CO2 each year, while creating 80 additional jobs at the Doncaster site.
Less packaging in Peterborough
At the Peterborough depot, new technology is being trialled to package orders to the size they need. IKEA says this could reduce material use by up to 30% by avoiding oversized boxes and excess paper filling.
The investment comes as online shopping accounts for 43.3% of IKEA’s UK sales in financial year 2026. Together, the projects are designed to strengthen the retailer’s UK fulfilment network as more customers order online.
Why it matters for Britain
The Doncaster project brings 80 new jobs and a closer delivery base for customers across northern England and Scotland. The changes also support lower delivery emissions and less packaging waste from two major UK distribution sites.
