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Ikea Plots $400 Million Distribution Upgrade for Vancouver and Toronto Regions

Retailer Will Build New Hub in Hamilton by 2025 to Serve Southwestern Ontario
An Ikea in Richmond, British Columbia, will be part of the $400 million the retailer is spending to upgrade its fulfillment abilities  (CoStar)
An Ikea in Richmond, British Columbia, will be part of the $400 million the retailer is spending to upgrade its fulfillment abilities (CoStar)
CoStar News
June 27, 2023 | 10:54 P.M.

Ikea Canada is spending $400 million on projects to expand fulfillment capabilities, including a new distribution centre in Hamilton, west of Toronto.

The Swedish retailer, which has 389 Ikea stores in 32 countries, including 14 in Canada, also plans to improve its operations in the greater Vancouver Area. It will expand its Richmond location with improved click-and-collect and locker pickup services while supporting truck, parcel, and collection point delivery throughout the greater Vancouver market.

"We are always looking for ways to optimize our operations to better meet our customers' need for convenience and speed while continuing to help fulfill their aspirations for a better life at home," said Geoffrey Macdonald, chief financial officer of Ikea Canada, in a statement."We are focused on further transforming and developing our fulfillment networks in key markets across the country."

In the greater Toronto area Ikea Canada plans to build a new customer distribution centre in Hamilton, Ontario, in 2025 to support expansion throughout Southwestern Ontario.

Ikea Etobicoke and Ikea Vaughan will also undergo expansions by 2025 to strengthen their store fulfillment capabilities and help the company keep in-demand products available and delivery times as short as possible while supporting future market growth.

Smaller Store Concept

The company will also be opening a small concept format in Scarborough Town Centre in Toronto this summer after opening a location in downtown Toronto last year.

Selwyn Crittendon will take over as CEO of Ikea Canada on August 1, as the company plots an omnichannel expansion. (Ikea)

The retailer announced last month that it was bringing in a new leader from the United States. Selwyn Crittendon will take over the role of Ikea Canada chief executive and chief sustainability officer effective August 1, 2023.

He assumes the role amidst Ikea's multi-million-dollar investments, part of its omnichannel retail strategy to sell through multiple sales avenues that include in-store and online.

Crittendon joined Ikea in 2002 as the Woodbridge, Virginia, store customer convenience manager.

In 20 years with the company, Crittendon has been an operations manager, sales manager and deputy store manager at Ikea Orlando, store manager at Ikea Miami and country customer experience manager at Ikea US.

He was recently chief business development manager at Ikea US where he led the country’s expansion, transformation, and innovation mandate.

Ikea Canada, part of Ingka Group, had 21.2 million visitors to its stores and 236 million visitors to ikea.ca in 2022.

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