<p>Established retailers are facing increasing competition from new online retailers. In light of this development, traditional bricks-and-mortar retailers are also establishing networked bricks-and-mortar and online retail channels under the ‘omnichannel’ model with the help of new digital and automation technologies. The article focuses on the digital transformation processes in traditional retail, which have received little attention in the literature so far. Here, we examine on the one hand how Ikea has greatly differentiated its logistics network geographically and simultaneously made it more flexible by investing in e‑commerce logistics centres. Concerning work processes and conditions, we show an increasing shift in job profiles from retail to logistics activities and increasing automation of manual and of planning and steering activities in sales and logistics, which give rise to new areas of conflict. Against this backdrop, works councils play an important role in preventing potential negative consequences for employees such as individual performance and behavioural control or demotions.</p>