Ikea plans to open a store in Toronto’s city centre as it chases urban customers that might not want to travel to big box stores in suburbia.

The retail giant is “actively exploring locations, concepts and solutions” for a downtown location, Ikea Canada chief executive Michael Ward said at an event in downtown Toronto on November 6th.

While it’s not yet clear exactly what the store will look like, how it will deliver products or when it will open, Ward said the retailer is “moving with speed” to make it work.

Ikea is famous for its massive showrooms and warehouses – it has 14 locations in Canada – but is trying to improve its online offerings and plan for the future given 70%  of people are expected to live in cities by 2050.

It opened its first downtown locations in Paris and New York earlier this year.

Ikea, a private company based in the Netherlands, isn’t required to release financial information. But it said its Canadian sales grew 6.1% to $2.53 billion in the past fiscal year. Online sales grew 8.2% to $261 million and store visits grew 2.7% to 31 million.

Traditional retailers have been struggling given the explosion of online shopping. E-commerce has grown about 25% this year, according to Statistics Canada.

Source: Financial Post