IKEA will close its small-format city-centre store in Toronto’s Scarborough district in early 2026, the furniture retailer announced.

The company said its decision was a response to a rapidly changing retail landscape and shifting consumer behaviour. Located at the Scarborough Town Centre mall, the store will remain open until the closure date is determined. 

The store lifespan has been brief. It opened in August 2023 as the global giant introduced its new smaller city-centre store concept. IKEA said shifting consumer behaviour towards online shopping and the limited range of products that could be sold within the smaller format have resulted in lower-than-expected performance.

“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,” said Selwyn Crittendon, IKEA Canada’s CEO and chief sustainability officer. 

“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 currently has 130 employees. The company said it intend to minimize the closure’s impact on them as much as possible.

Photo: CNW Group/IKEA Canada Limited Partnership