Swedish furniture retailer IKEA will transform its store in southern Budapest to become the world's largest fulfillment centre by 2026, tripling warehouse capacity to support both in-store and online orders from a €50mn investment, executives said after a ceremonious reopening.

After a year-long renovation, the store reopened with a redesigned layout, integrating cutting-edge automation and digital solutions to create a whole new shopping experience.

In the long run, IKEA expects its new logistics system and digital solutions to better meet customer demands while improving overall efficiency.

The transformation will introduce a hybrid model that combines traditional in-store shopping with warehouse logistics, blending digital and physical retail advantages. "We are constantly working on making our affordable home furnishing products available to as many people as possible, both physically and digitally, in the most sustainable way," said Tolga Öncü, head of retail at IKEA (Ingka Group).

Among some of the new innovative features: over 300 digital screens will replace traditional price tags and posters, while interactive kiosks will let customers visualise products before purchase. Automated shuttle robots are put to work to transport ordered products along overhead tracks to pick-up points. Customers can pay at various points, including near the entrance, allowing them to skip the showroom.

The new operational model at IKEA Soroksar could serve as a blueprint for other countries in the future, said David McCabe, who heads IKEA’s unit in the Czech Republic, Hungary and Slovakia, adding that shopping will be even more immersive with a digital experience.

The upgrade will boost the retailer’s capacity to fulfill 950,000 online orders from 540,000 at present, while state-of-the-art logistics solutions will reduce operational costs and delivery times. IKEA aims to create a more sustainable and efficient system, providing faster service to customers across the region.