Australia Post and IKEA announced a new strategic partnership, entering into a three-year agreement to further expand IKEA’s delivery footprint in Australia.
With ten stores in six states and territories Australia-wide, the Swedish retailer’s focus on omnichannel retailing through e-commerce and remote selling channels has sparked exponential parcel growth over the past five years, with over 500,000 parcel orders being fulfilled in FY24. Under the new multi-million-dollar deal, Australia Post becomes their primary eCommerce fulfilment partner for small and medium parcels, accounting for approximately 65% of IKEA Australia’s total number of parcel orders.
With 23% of all IKEA Australia parcel orders delivered to areas outside the reach of metro stores, Australia Post will support the expansion of IKEA deliveries across its extensive network, reaching even the most regional and remote parts of Australia. The widespread Australia Post collection points across Australia will also greatly benefit IKEA customers, who will be able to pick up their IKEA parcel orders from convenient locations such as their local Post Office.
Australia Post CEO and Managing Director, Paul Graham, highlighted the partnership as strategically beneficial for both companies.
“Australia Post is proud to be chosen as IKEA Australia’s trusted delivery partner. With our robust infrastructure and commitment to reliability and efficiency for customers, we have built the largest delivery network in the country.
“We look forward to supporting the continued growth and momentum of this iconic brand as they expand their customer reach in Australia through our extensive delivery capabilities.”
IKEA Australia CEO and Chief Sustainability Officer, Mirja Viinanen, said:
“As an omnichannel retailer, our goal is to bring IKEA to more people, in more ways and in more places, making it easier and more convenient than ever before for Australians to shop with us to create homes they love.
“We’re famous for our flatpack furniture, however what our customers don’t always realise is much of the IKEA home furnishing range is available to them in a parcel via the post. Partnering with Australia’s largest delivery provider allows us to greatly enhance our accessibility for our customers in this way.
“We are excited to work together with such a highly trusted brand as Australia Post, who shares our values when it comes to excellence in customer experience and a dedication to sustainability and look forward to a successful new partnership.”
Australia Post is projected to deliver over 250,000 IKEA parcels each year under the agreement, offering both Parcel Post and Express Post delivery options for customers across the country.
Sustainable delivery solutions also underpin the partnership, with Australia Post operating the country’s largest electric delivery vehicle fleet, contributing to IKEA Australia’s ambition to offer zero-emission deliveries.
The three-year partnership launches this October.
