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Ikea facilitates expansion in Canada

BY Gina Acosta

Ikea is opening a new distribution center in Ontario as the Swedish home furnishings retailer ramps up plans to double its footprint in Canada over the next 10 years.

Ikea says its new distribution center in Mississauga, Ontario, allows the company to become even more accessible to customers by allowing for fulfillment of customer orders from four Toronto area stores and e-commerce purchases. This improved logistical set-up will enable shorter lead times for customers to receive their products, while at the same time contributing to Ikea's sustainability goals.

"It is an exciting time for Ikea in Canada as we become even closer to our customers than ever before, today's grand opening is the first step in truly transforming Ikea into a true multi-functional retailer," said Stefan Sjöstrand, president, Ikea Canada.

With the ambition to become even more accessible to Canadians, Ikea says it will double its stores from coast-to-store over the next 10 years. New stores, Pick-Up and Order Points, increased service offers, an improved e-commerce interface and an optimized distribution network will support the growth plans to meet customers in new and existing markets.

"Ikea joins the hundreds of other world-class businesses that choose to invest to create jobs, and achieve unrivalled success in the City of Mississauga," Mayor David Crombie said. "Ikea's new distribution center will result in job creating opportunities for residents, generate new economic development opportunities and strengthen our thriving local economy."

The distribution center will be home to 200 new co-workers. Currently, the unit has 115 co-workers and is looking to hire another 85 co-workers.

This latest announcement comes on the heels of recent announcements from IKEA Canada about its ambition to be more accessible to Canadians and double in size by 2025. Ikea currently has 12 stores across Canada, and recently announced plans to open a 13th store in Halifax, Nova Scotia, in late 2017 and an e-commerce store. In addition to Pick-Up and Order Point locations currently open in St. Catharines, Quebec City, London and Whitby with the Kitchener and Windsor locations to opened in spring 2016. The company sees growth potential in opening Pick-Up and Order Points, whose format is part of a global test pilot in markets where there are currently no stores, ensuring Ikea is accessible to more people, faster.

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M.Stewart says:
Mar-22-2016 12:55 pm

The mayor of Mississauga is Bonnie Crombie, not David Crombie. David Crombie was mayor of nearby Toronto in the 1970s.

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