Less than a year after Ikea announced it would build a full-sized store in London, those plans are on hold.
The iconic Swedish big-box retailer has confirmed to Global News Radio 980 CFPL that plans to build the store at a new retail and commercial complex at the intersection of Highway 401 and Wellington Road are on hold.
The retail giant attributes the delay to the “rapidly changing retail environment” and says it is evolving its business model for the future.
“IKEA has made the decision to delay the London store project while we evaluate a new solution for the site,” said Kristin Newbigging, IKEA Canada Public Relations Manager in an email. “While this is happening, we will also continue to enhance our digital tools and improve our service offer and pricing to meet many more of our customers in the London area.”
Construction of the store was set to begin in late summer 2018 with the store opening in fall 2019. A new timeline for when the London store will open hasn’t been provided.
The delay is sure to catch many in London off guard. Earlier this summer, the property where the Ikea store is planned was cleared and levelled in anticipation of construction.
Despite plans for London being put on hold, Newbigging told 980 CFPL the retailer remains committed to the London market.
“We still see potential in the London market, and will move forward with the purchase of the land for this development site as we begin exploring new solutions to better serve our London customers,” she wrote.
Newbigging says it’s too soon to say what the modified plans for London may be.
The original plans called for London to be home to the 15th full-sized store in Canada. The plans called for the store to be 270,000 square feet, with a showroom, market hall, children’s play facility and a restaurant.
Ikea says the plan to put the new store for London on hold won’t have any impact on the pick-up and order facility in the city.
“We appreciate the overwhelming support we’ve received from the London community over the years and we remain committed to finding the right solution for the site,” Newbigging said.
While plans for the London store are on hold, Ikea is moving forward with the opening of a new Quebec City store next month.
Quebec City is currently home to a pick-up and order point, just like London. The grand opening for the Quebec City store will be Aug. 22.
There’s no word on what impact, if any, the Ikea decision will have on Costco’s planned move to the same retail site. Soon after Ikea’s announcement last fall, Costco said it planned to move to a piece of land right beside Ikea.
The Costco move was done so it could open at the same time as the new Ikea store.