Home-furnishings retailer IKEA has submitted plans to the city of Joliet, Illinois, for a second distribution center, one to accompany the terminal the retailer previously announced and plans to open in the summer of 2017.
In February of 2015, IKEA advanced the development of its previously approved 1.4-million-square-foot Midwest distribution center on 72 acres of land already purchased in 2008 at the Laraway Crossings Business Park in Joliet, 48 miles southwest of Chicago.
The company is now proposing another, similar facility on 62 acres that it hopes to purchase adjacent to its planned first building.
This combined distribution hub would serve the inventory needs of IKEA stores throughout the Midwestern United States, as well as customer fulfillment. Goods received by the Joliet facilities will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores worldwide.
With more than 1,300 suppliers in 54 countries, IKEA globally transports products to its stores through regional distribution centers. These two Joliet facilities will enhance the current distribution network comprised of two distribution centers on the West Coast and three on the East.
Its central location will allow goods to be received at coastal ports from both Asia and Europe and then transported inland to the Joliet warehouses. Also, proximity to a nearby railroad intermodal will provide additional long-term transportation options. And by operating two Joliet terminals, IKEA will eliminate a significant amount of CO2 emissions annually, with even more reductions expected via intermodal solutions.
In terms of contributing to the local economy, this second project eventually will result in even more construction-related jobs and positions at the distribution center, in addition to property tax revenue generated for local governments and schools. IKEA also will evaluate potential on-site power generation to complement its current U.S. renewable energy presence at nearly 90 percent of its U.S. locations.
