IKEA opens second Canadian DC

by Emily Atkins

Mississauga, Ontario—IKEA Canada opened its new distribution centre in Mississauga today. The 400,000 square-foot facility will be home to 200 employees and will serve the furniture and home retailer’s four area stores, pick-up points and fulfil direct-to-customer deliveries.

The new DC is key to IKEA Canada’s long-term expansion plan–doubling its Canadian stores in the next 10 years—and is also part of a pilot project that’s revamping the retailer’s distribution strategy in response to omni-channel demands. This DC is what the company is calling a “Multi-Function Logistics Unit”or MFLU, designed to serve stores, its new Pick-Up and Order Point locations, and online orders.

At the opening, IKEA Canada president Stefan Sjöstrand said, “It is an exciting time for IKEA in Canada as we become even closer to our customers than ever before, today’s grand opening is the first step in truly transforming IKEA into a true multi-functional retailer.”

Also congratulating IKEA at the opening was Mississauga mayor, Bonnie Crombie, who said: “IKEA is proof Mississauga’s economy is strong. We have become a net importer of jobs – more people come to work in Mississauga daily than leave.”

The new DC is not yet fully staffed, with about 85 more workers needed.

IKEA currently has 12 stores across Canada, and recently announced plans to open a 13th store in Halifax, Nova Scotia in late 2017 along with an eCommerce store. In addition to Pick-Up and Order Point locations currently open in St. Catharines, Quebec City, London and Whitby, with Kitchener and Windsor locations to open in Spring 2016. The company sees growth potential in opening Pick-Up and Order Points, whose format is part of a global test pilot in markets where there are currently no stores, ensuring IKEA is accessible to more people, faster.

MM&D was delighted to be welcomed into the new DC, and will be sharing more details about the facility and its omni-channel operations in a coming print edition.