IKEA President Stefan Sjöstrand said more Canadian locations will be announced Thursday.
The London location will open at Wonderland Road and Southdale Road in late fall of early winter and will employ about 20 people.
IKEA says 75,000 people shop on the company's website and now customers can order online and pick up their items at the new London location.
At the London location, customers will also be able to buy services to support their purchases, sit at a computer station to browse www.IKEA.ca to make online purchases, as well as having access to a limited assortment of products available for immediate takeaway.
IKEA currently has 12 full-fledged stores across Canada.
"The ambition is to make IKEA more accessible to the many Canadians." Sjöstrand said in a statement. "The Pick-Up-Points allow IKEA to expand quickly into markets that have been identified as having potential, resulting in consumers having easier access to our products."
IKEA said in a statement the pick-up-point location will reduce delivery times and costs for customers.
"This is fantastic news for London. The Southwestern Ontario region will be well served by this Pick-Up-Point location — the first of its kind in North America," London Mayor Matt Brown said in a statement. "Our city has been chosen to test new products, concepts and service delivery models for decades. Londoners have been looking forward to welcoming IKEA here for many years and now we look forward to watching it grow."
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