IKEA Canada is testing a different kind of store for a different kind of shopping trip. The retailer says its first Canadian compact store will open September 29 at White Oaks Mall in London, Ontario, with a layout of about 43,000 square feet. That is roughly one-fifth the size of IKEA Burlington, but it is not meant to be a tiny showroom only. IKEA says the London location will carry more than 2,500 everyday essentials and seasonal favourites, plus about 400 furniture items that shoppers can buy and take home from a self-serve warehouse. For London-area shoppers, the practical change is simple: an IKEA visit may no longer have to mean a half-day trip to a large-format store outside the usual errand route.
The store is also a sign of where Canadian retail is heading. Big-box chains are still important for major purchases, but more shoppers are mixing store visits, online research, pickup points, delivery, and quick comparison shopping. IKEA’s own announcement describes the compact store as part of an omnichannel setup, not a replacement for its full stores or planning services. Customers will still be able to order the full IKEA range, use delivery and collection options, book planning appointments at the London Plan and order point on Wonderland Road South, and pick up online orders at the Wilton Grove Road pickup location. In other words, the compact store is less about shrinking choice and more about splitting different jobs across different channels.
That matters because shoppers are behaving more deliberately. Retail Council of Canada’s Spring 2026 Canadian Shopper Sentiment Study, conducted by Leger, found that 58 per cent of purchases are still completed in store, while 39 per cent are made online. It also found that 66 per cent of shoppers use in-store browsing as part of their research process, and 22 per cent start the journey in store. Those numbers help explain why a smaller mall-based IKEA can make sense: many households do not need to browse every sofa, wardrobe, and kitchen option on every visit. They may want to check storage bins, lamps, kitchen items, bedding, small tables, or a seasonal item in person, then order larger pieces only after comparing dimensions, delivery costs, and return options online.
The timing also fits the latest retail data. Statistics Canada reported that retail sales rose 0.6 per cent to $74.3 billion in June, with general merchandise retailers up 2.7 per cent and clothing-related retailers up 3.1 per cent. At the same time, retail e-commerce sales jumped 9.9 per cent to $5.7 billion and accounted for 7.7 per cent of total retail trade. That does not mean Canadians are abandoning stores. It means the store is becoming one stop in a longer buying path. A shopper might research a shelving unit on a phone, check a room display in person, compare the price with another retailer, then choose delivery if the box will not fit in the car. Retailers that make those steps feel connected have an advantage when household budgets are tight.
For shoppers, the takeaway is to treat compact-format stores differently from full-size destinations. Before visiting, check whether the item is stocked for immediate takeaway, available only by order, or better handled through a planning appointment. Smaller stores can be useful for touch-and-feel decisions, quick household basics, and avoiding impulse buys that happen during long store walks. They can also save travel time if the alternative is driving to a distant warehouse store. But they may not be the best place to solve a complex room project in one visit. For bigger purchases, shoppers should still compare delivery fees, pickup options, return windows, assembly needs, box dimensions, and whether a sale price applies online, in store, or both.
The London opening is local news, but the pattern is national. Canadian shoppers are asking retailers for convenience without giving up choice, and retailers are responding with more formats: large stores, compact stores, pickup locations, plan-and-order studios, marketplaces, and stronger websites. That can help consumers if it creates more ways to compare prices and avoid wasted trips. It can hurt if each channel has different stock, fees, or fine print that makes the final cost hard to see. The smart approach is to use the new formats for what they do best: browse nearby, verify quality in person, reserve or order only after checking the total price, and keep receipts easy to find. IKEA’s first compact Canadian store is not just another opening; it is a reminder that the best deal is increasingly found by combining channels, not by relying on only one.
Source trail: IKEA Canada to open first new compact store in London, Ontario on September 29 — https://www.newswire.ca/news-releases/ikea-canada-to-open-first-new-compact-store-in-london-ontario-on-september-29-899137493.html IKEA Canada to open first compact store in London, Ont. on Sept. 29 — https://retail-insider.com/retail-insider/2026/09/ikea-canada-to-open-first-compact-store-in-london-ont-on-sept-29/ New Research: How Canadian Shoppers Are Navigating Affordability — And What It Means for Competition and Choice — https://www.newswire.ca/news-releases/new-research-how-canadian-shoppers-are-navigating-affordability-and-what-it-means-for-competition-and-choice-853064055.html Statistics Canada, The Daily: Retail trade, June 2026 — https://www150.statcan.gc.ca/n1/daily-quotidien/260821/dq260821a-eng.htm