IKEA Canada to Close Scarborough Town Centre Store in Early 2026

Closure of small-format city location reflects shifting consumer behaviour across the GTA

BURLINGTON — IKEA Canada has announced plans to close its Scarborough Town Centre (STC) location in early 2026, citing significant changes in consumer shopping habits and a broader shift toward online purchasing.

The Scarborough store, which opened in August 2023 as a small-format city-centre concept, will remain open until a final closing date is confirmed. The decision comes as IKEA adapts to an evolving retail landscape and the growing dominance of e-commerce, which continues to reshape how Canadians furnish their homes.

“We are constantly renewing and improving our business in order to remain relevant in an ever-changing retail world and to secure our future as a leading omnichannel retailer for generations to come,” said Selwyn Crittendon, CEO and Chief Sustainability Officer of IKEA Canada. “This decision has not been taken lightly and even as we respond to market needs, we are committed to putting our people first and leading with our culture and values through this transition.”

Digital Growth Outpaces Small-Format Model

The IKEA Scarborough Town Centre location was part of a global pilot program to test smaller, urban retail formats designed for convenience and accessibility. However, the model faced challenges in meeting customer expectations due to a limited product range and smaller footprint.

According to IKEA Canada, 33.8 million visitors shopped in-store across the country last year, while 162.6 million visitors browsed IKEA.ca — more than four times the number of physical visitors. The company said this rapid growth in digital engagement, combined with the smaller store’s performance, led to the decision to wind down the concept at Scarborough Town Centre.

Supporting Employees and the Community

The STC location currently employs 130 co-workers, and IKEA Canada emphasized that supporting its staff through this transition remains a top priority. The company intends to minimize the impact on affected employees through redeployment opportunities and other supports.

Despite the closure, IKEA reaffirmed its commitment to the Scarborough community, noting that customers can continue shopping through IKEA.ca, Click and Collect, and home delivery, as well as at the nearest full-size store in North York.

“Valuable learnings and insights from IKEA STC will inform how the company realigns its resources and adapts as a business that is committed to creating a better everyday life for the many,” the company said in a statement.

About IKEA Canada

Founded in 1943 in Sweden, IKEA operates 574 stores and planning studios worldwide, including 16 locations across Canada. The retailer remains one of the country’s most visited home furnishing destinations, offering affordable, functional, and sustainable products for millions of Canadians every year.

For more information, visit IKEA.ca.

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