Toronto 
IKEA Canada will shut down its Scarborough Town Centre (STC) location in early 2026, citing changing shopping habits and a shift toward online retail in the Greater Toronto Area.
CNW Group/IKEA Canada Limited Partnership
The store, which opened in August 2023 as a small-format, city-centre concept, will remain open until a final closure date is confirmed.
Selwyn Crittendon, CEO and Chief Sustainability Officer of IKEA Canada, said the decision followed ongoing efforts to adapt to the evolving retail landscape. “We are constantly renewing and improving our business in order to remain relevant in an ever-changing retail world,” he said, noting that the company would prioritize support for employees during the transition.
The Scarborough store employs 130 workers. IKEA stated that helping affected staff through the closure process is its top priority.
The smaller-format store model was designed to bring IKEA products closer to urban consumers. However, limited product availability and a rise in online shopping led to lower-than-expected performance. In the past year, IKEA Canada recorded 33.8 million in-store visits and 162.6 million visits to its online platform, IKEA.ca.
Despite the closure, IKEA emphasized its continued commitment to serving customers in Scarborough through other channels, including the full-sized North York store, online shopping, collection points, click-and-collect services, and home delivery.
The company said the decision aligns with broader global trends in retail, as more consumers choose digital shopping experiences over physical store visits.
