Swedish home furnishings retailer IKEA is entering the London, Ontario market later this year with a new small-format store at White Oaks Mall. The approximately 43,000 square foot location will occupy part of a former Hudson’s Bay space, as part of a broader redevelopment led by Westdell Development Corporation.
The project represents a transformation of roughly 165,000 square feet of former department store space into a multi-use retail and entertainment hub. The IKEA London Ontario store will serve as a key anchor in repositioning the property as a modern, experience-driven destination.
First-of-Its-Kind Small Store Concept in Canada
The London location will debut a new type of IKEA store designed for convenience and accessibility, representing the first example of this concept in Canada. Unlike traditional big-box IKEA stores, this format focuses on everyday essentials, quick visits, and a curated assortment of products.
“At IKEA, we’re on an exciting journey to transform our business to be more accessible, affordable, and sustainable to our customers no matter how they choose to shop with us,” says Selwyn Crittendon, CEO and Chief Sustainability Officer, IKEA Canada. “As we approach our 50th anniversary in Canada this year, we are moving with speed to ensure that we continue to meet our customers’ evolving needs and dreams at home, guided by our founding vision to create a better everyday life for the many.”
The store will offer more than 2,000 items available for immediate purchase, alongside access to IKEA’s full product range through delivery and pickup options. Customers will also find room displays, planning services, and a selection of Swedish food offerings.
Strategic Expansion into a Growing Market
The IKEA London Ontario store builds on the company’s existing presence in the region, which includes a Plan and Order Point that opened in 2024. The new format reflects a broader strategy to expand into urban and mid-sized markets with more flexible store models.
“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,” adds Crittendon. “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.”
The move also aligns with global expansion plans from Ingka Group, which recently announced ambitions to open additional locations across several international markets, including Canada.
Small-Format Strategy Evolves After Scarborough Exit
The launch of the IKEA London Ontario store comes as the retailer continues to refine its approach to smaller urban formats in Canada. In October 2025, IKEA Canada confirmed it would close its “city-centre” store at Scarborough Town Centre, with the shutdown expected in early 2026, less than three years after opening.
According to the company, the Scarborough location did not meet sales expectations despite strong foot traffic. The approximately 80,000 square foot store offered a limited assortment of about 2,500 products, which constrained its ability to compete with full-sized IKEA locations that provide a broader cash-and-carry range. At the same time, IKEA pointed to a significant shift in customer behaviour, with online engagement far outpacing in-store visits. In the year prior to the announcement, IKEA Canada recorded more than 160 million visits to its website compared to fewer than 34 million in-store visits nationwide.
Operating costs were also cited as a factor, with the smaller format proving more expensive to run relative to its revenue performance. The Scarborough location employed approximately 130 staff, with IKEA indicating it would seek redeployment opportunities across its Greater Toronto Area network, including its North York store.
The closure also reflects broader changes at Scarborough Town Centre, which has seen other major tenant departures in recent years. At the same time, IKEA continues to test and evolve its physical retail strategy. Its downtown Toronto location at Aura remains in operation, while the new London format, at approximately 43,000 square feet, signals a further shift toward more compact, convenience-focused stores that complement its growing e-commerce business.
White Oaks Mall Redevelopment Signals New Direction
For White Oaks Mall, the arrival of IKEA represents a pivotal step in a broader repositioning strategy under Westdell’s ownership. The mall, which first opened in 1973, has long served as a key retail destination in the London region, drawing more than six million visitors annually.
“Reimagining 165,000 square feet of iconic space was always going to be about more than bringing in great retailers; it was about bringing in the right partners. IKEA stood out immediately, not just for what they offer as a brand, but for what they stand for as an organization. Nearly 50,000 square feet of that vision belongs to them. The remainder of this space will be equally transformative, and we look forward to sharing more in the weeks ahead. We are in the business of improving the communities we serve, and we are thrilled to welcome partners who hold that same standard. London is getting something truly special, and we couldn’t be prouder that it starts here, at White Oaks.” said Iyman Meddoui, President, Westdell Development Corporation.
Tarik Kasem, General Manager of White Oaks Mall, emphasized the broader impact of the redevelopment on the local retail landscape.
“London is already a thriving, dynamic market, and this is the moment we get to prove it to the rest of the world. What we are building here, the calibre of retailer we are bringing through these doors, elevates everything this mall has always stood for. For over half a century, White Oaks has shaped this community. The next chapter is going to be the most exciting one yet, and we are just getting started.”
Those who fail to learn from history and all that…
This is another good news story. Remember that IKEA Canada was slated to open a standard store in a power centre development in London, but cancelled its plans a few years ago due to a shift in corporate priorities. Now London is again getting a IKEA store and showroom (as opposed to a mere pick-up point) and White Oaks gets a new anchor which is guaranteed to drive traffic to the redeveloped mall.