Ikea Canada says it plans to shutter its Scarborough Town Centre location next year in response to “a rapidly evolving retail landscape,” along with “changing consumer behaviour.”
The closure will take place in early 2026 and the store will remain open to the public until a date is finalized, the furniture retailer said in a news release.
“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,” Selwyn Crittendon, the CEO and Chief Sustainability Officer of Ikea Canada, said in a written statement.
“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.”
The store opened a little over two years ago as a smaller-format “city-centre store,” which has fewer furniture items in stock. Ikea opened a city-centre store in Toronto’s downtown core in 2022.
Ikea said it has been testing the smaller-scale stores in several markets around the world.
‘Lower-than-expected performance’
“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,” a news release announcing the closure read.
The company noted that about 130 people are employed at the Scarborough Town Centre location.
“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,” the news release continued.
“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.”