IKEA Canada to close IKEA Scarborough Town Centre location
Closure of the small format city-centre store due to shifting consumer behaviour in the Greater Toronto Area
BURLINGTON, ON, Oct. 7, 2025 /CNW/ - In response to a rapidly evolving retail landscape and changing consumer behaviour, IKEA Canada will close its IKEA Scarborough Town Centre (STC) location. The closure is planned to take place in early 2026 and the store remains open to the public until a final date is determined.
"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," says Selwyn Crittendon, CEO and Chief Sustainability Officer, 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."
IKEA STC opened in August 2023 as a city-centre store – a new smaller format that IKEA had been testing in several markets globally. With the evolution of e-commerce, Canadians are choosing to shop more often with IKEA digitally. Last year, IKEA Canada welcomed 33.8 million visitors to its stores and 162.6 million visitors to IKEA.ca. Shifting consumer behaviour towards online shopping combined with a limited range of products that could be offered within the smaller footprint have resulted in lower-than-expected performance.
The IKEA STC location currently employs 130 co-workers. Caring for and supporting each of them through this transition is the company's highest priority and the retailer aims to minimize the impact as much as possible.
IKEA remains committed to serving the Scarborough community in the best way possible and will continue its efforts to be affordable, accessible, and sustainable to Canadians no matter how they choose to shop with the brand. Customers in the area can access products, solutions, services, and inspiration at the nearest full-size location in North York as well as through other customer touchpoints such as IKEA Plan and order points, IKEA.ca, Collection points, Click and collect, and home delivery.
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.
ABOUT IKEA CANADA
Founded in 1943 in Sweden, IKEA is a leading home furnishing retailer, offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them. IKEA Canada is part of Ingka Group which operates 574 IKEA stores, shops and planning studios in 31 countries, including 16 in Canada. Last year, IKEA Canada welcomed 33.8 million visitors to its stores and 162.6 million visitors to IKEA.ca. IKEA Canada operates business through the IKEA vision - to create a better everyday life for the many people and does so through its local community efforts and sustainability initiatives. For more information on IKEA Canada, please visit IKEA.ca.
SOURCE IKEA Canada Limited Partnership
MEDIA CONTACT: Please note that media interviews are not being granted at this time. Alicia Carroll, PR Leader, IKEA Canada, [email protected]
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