IKEA Retail U.S. partners with Optoro to reduce waste from returns
Ingka Group, owner of IKEA Retail U.S. continues to grow its presence in the U.S. with minority investment in Optoro, advancing the company's commitment to creating a more circular economy
CONSHOHOCKEN, Pa., Dec. 4, 2019 /PRNewswire/ -- IKEA Retail U.S. today announced its partnership with Optoro®, the leading provider of returns optimization technology. Optoro's technology will be implemented in 10 IKEA distribution centers, 50 retail stores, and the Customer Support Center in the U.S., and the company is exploring the potential to expand the partnership into other markets. The platform will streamline the returns flow and improve customer experience. Using Optoro's platform, IKEA Retail aims to remove waste from its reverse supply chain as part of its mission to build a circular business.
"We're on a mission to become a circular business by 2030, and we need partners like Optoro who can help us achieve our goals," said Javier Quiñones, President & Chief Sustainability Officer of IKEA Retail U.S. "Optoro's solution will enable us to eliminate much of the waste created in the reverse supply chain, from minimizing the carbon emissions released in return shipping to finding the best next homes for returned items."
Returns create costly financial and environmental problems for retailers, and with the growth of e-commerce, the volume of returned inventory continues to rise. According to the National Retail Federation, over $400 billion in goods are returned every year in the US. Historically, many returns end up in landfills and the transportation of these goods contributes to retail's carbon footprint. Optoro's solution leverages data analytics and machine learning to help retailers efficiently manage and resell returned inventory.
"We are thrilled to partner with IKEA Retail, a global leader in designing a more sustainable retail future," said Tobin Moore, CEO and cofounder of Optoro. "IKEA shares our mission of looking to innovation and technology to build the circular economy. Through our work together, we will be able to make an even larger impact on reducing waste from returns, while also improving the customer experience to help fuel ecommerce growth."
Ingka Group, owner of IKEA Retail U.S., recently participated in Optoro's latest funding round through its investment arm, Ingka Investments. This investment is the latest in a series of investments made by Ingka Group in U.S.-based businesses, all of whom share the brand's values and ongoing commitment to becoming people and planet positive.
To learn more about Optoro's technology, please visit optoro.com/impact.
About Optoro
Optoro is a technology company that is transforming the way retail brands manage and optimize returned inventory. Using proprietary technology and data science, Optoro's returns optimization platform efficiently routes all returned goods to the best channel, reducing financial, operational and environmental waste, while also improving the customer experience. Learn more at www.optoro.com.
About Ingka Group
Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 11 different groups of companies that own and operate IKEA retail under franchise agreements with Inter IKEA Systems B.V. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Ingka Group is a strategic partner in the IKEA franchise system, operating 374 IKEA stores in 30 countries. These IKEA stores had 838 million visits during FY18 and 2.6 billion visits to www.IKEA.com. Ingka Group operates business under the IKEA vision - to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford it.
SOURCE IKEA
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