Ikea Canada to Permanently Close a Toronto Store

Just two years after opening, the Ikea store at Scarborough Town Centre in Toronto’s east end is shuttering its doors.

The closure of the store is planned for early next year. An exact date has not yet been determined.

The home furnishings retailer says shifting consumer behaviour toward online shopping and the limited range of products that could be offered at the smaller store resulted in lower-than-expected performance.

Last year, Ikea Canada welcomed 33.8 million visitors to its stores and 162.6 million visitors to its online domain.

The approximately 80,000-square-foot store offers roughly 2,500 products, roughly a quarter of which can be found at a regular store.

“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 at 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.”

The shopping centre location opened in August 2023, as a city-centre store — a new smaller format that Ikea had been testing in several markets globally.

It currently employs 130 workers.

Ikea has one other similar type store in Toronto, at Yonge and Gerrard streets in the downtown core. Smaller at 66,000 square feet, it opened in June 2022.