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Ikea to close Scarborough Town Centre store next year
Ikea will close its Scarborough small format store after weaker performance driven by online shopping and limited product range, affecting 130 employees, the company said.
IKEA Canada announced it will close its Scarborough Town Centre small-format store next year, the company said in a news release first published Oct. 7, 2025.
IKEA says shifting consumer behaviour toward online shopping and the smaller-format store product limitations produced weaker-than-expected performance amid a rapidly evolving retail landscape.
IKEA identifies caring for staff as a priority and is investigating relocation and support measures for 130 employees at the IKEA Scarborough Town Centre location, exploring options at other IKEA locations.
Customers in the area can access products at the nearest full-size North York store and IKEA.ca, and the location will remain open until a final closing date is determined.
IKEA has been testing smaller-scale, city-centre stores globally, including IKEA STC opened in August 2023, and says learnings will guide resource realignment across its 16 locations in Canada.