Ikea Canada announced on Tuesday that it will be closing its Scarborough Town Centre location by early 2026.
The closure of what the company calls its “small format city-centre” store comes barely two years after it opened its doors in August 2023. Ikea said that 130 workers are employed at the store at the shopping centre.
In an online statement, the company wrote that the store has not performed as well as expected, and cited “shifting consumer behaviour toward online shopping” as a reason.
This is not the first closure of a major retailer at Scarborough Town Centre (STC). The French sporting goods company Decathlon opened at store at the mall in 2023 and then closed it — along with four other locations in Greater Toronto — in July 2025. According to an statement on Decathlon’s website, the move was part of a response to “consumers valuing variety across online and in-store formats.”
And of course, the Hudson’s Bay Company, Canada’s oldest company, also closed its doors at the mall as part of its liquidation process in June 2025. It was saddled with more than a billion dollars in debt.
A Scarborough Town Centre spokesperson expressed no concern about the Swedish chain’s departure, in a statement saying, “Scarborough Town Centre continues to thrive as one of Toronto’s premier shopping destinations. While transitions such as this are part of the business and ever evolving retail landscape … With over 250 retailers and a strong community presence, we continue to evolve our offerings at STC to meet our customer’s needs and as always, will activate available space with new and exciting concepts.”
The closest alternative Ikea location for shoppers inconvenienced by its Scarborough Town Centre closure is the full-size store in North York. With the closure, Ikea will have 15 locations in Canada.
