Apr 16, 2026
IKEA Canada is rolling out a new type of smaller store in Canada, starting with a location in London, ON, as retailers respond to shifting shopping habits and rising operating costs.
The new format, set to open in fall 2026, will be about 43,000 square feet — roughly one-fifth the size of a traditional IKEA — and will focus on everyday essentials and quicker, more convenient visits.
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"By offering the iconic IKEA store experience on a smaller scale, we are leaning into the physical store that we are best known for while delivering an innovative approach that reflects a rapidly changing retail landscape and customer preferences," said Selwyn Crittendon, CEO of IKEA Canada, in a statement.
"Customers have responded positively to pilot stores in other countries, and we will continue to listen to co-worker and customer feedback to renew and improve."
A shift toward convenience and flexibility
Unlike IKEA’s warehouse-style stores, the smaller format is designed for shorter trips and more practical purchases.
Customers will still be able to browse room displays and buy a curated selection of about 2,000 items on-site, but the full product range will remain available through online ordering, with delivery or pickup options.
That blend of in-store browsing and digital fulfillment reflects how many Canadians now shop — combining convenience with flexibility, rather than relying on a single, large in-person trip.
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Why smaller stores make sense now
The move also highlights how retailers are adjusting to a more cost-sensitive environment.
Large-format stores require significant investment and depend on high, consistent foot traffic. Smaller locations, often placed in malls or urban centres, are faster and more cost-effective to open, while still maintaining a physical presence.
“These stores enable us to be present in more communities,” Crittendon said, adding that the format is intended to complement both traditional stores and online shopping.
What shoppers can expect
For consumers, the experience will likely feel more streamlined — but also more selective.
With less inventory available in-store, shoppers may rely more on delivery or pickup for larger purchases, while using the physical space for inspiration, planning and smaller, immediate buys. At the same time, the smaller footprint should help to make IKEA more accessible to people who live farther from its larger warehouse locations, reducing the need for longer trips.
And yes, there will be a selection of IKEA’s well-loved food items available, too.
The London store, which will be located in White Oaks Mall (in place of the Hudson’s Bay store) is the first confirmed location in Canada under this new format, with more potential openings expected as IKEA expands the concept.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
