In a surprising turn of events, IKEA has confirmed it will permanently close its Scarborough Town Centre (STC) store, marking a major shift in the Swedish retailer’s presence in Toronto. This move comes just a couple of years after the store first opened its doors with high expectations and considerable fanfare.
The announcement was made via the company’s website on Tuesday, where IKEA explained the decision was influenced by a “rapidly evolving retail landscape” and “shifting consumer behaviour in the GTA.”
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Timeline for the Closure: What We Know So Far
Store Will Remain Open Into 2026 — But For How Long?
While IKEA has not provided a specific end date, it has stated that the STC location will close in “early 2026.” Until then, customers can expect the store to operate under normal business hours.
Services like returns, exchanges, click-and-collect pickups, and in-store dining at the IKEA deli will continue as usual for the time being. The company assures customers that all amenities will remain available until an official closing date is announced.
A Short-Lived Run: From Grand Opening to Unexpected Closure
The Rise and Fall of IKEA STC
The Scarborough Town Centre store only opened in August 2023, taking over a 7,489-square-metre space previously occupied by Sears. Positioned as one of IKEA’s smaller-format “City” stores, it catered to urban shoppers with a curated selection of home essentials, smaller furniture pieces, and showroom setups for larger items that could be ordered for delivery.
Its launch followed closely after IKEA debuted its City store in downtown Toronto at Yonge and Gerrard in 2022, a location that is not impacted by the Scarborough closure and will continue operating.
What Happens Next for IKEA in the GTA?
Other Toronto-Area Stores Are Staying Open
Despite this unexpected news, IKEA is not retreating entirely from the Toronto market. The company still maintains large-format stores in:
- North York
- Etobicoke
- Burlington
- Vaughan
- Ottawa
In addition, IKEA continues to operate a network of “Plan & Order Points” across Ontario — smaller locations designed for customers to work with staff on designing kitchens, bathrooms, and other home projects.
Why IKEA Is Closing the STC Location
While IKEA hasn’t released detailed financial figures or customer data, the closure seems to reflect broader trends in the retail sector. As consumers increasingly shift to online shopping and demand more flexible, digital-first experiences, traditional in-person retail — especially in mall settings — has faced mounting challenges.
The STC store may not have generated the foot traffic or sales performance needed to sustain long-term operations, particularly with another City store already serving downtown Toronto.
What This Means for Shoppers in Scarborough and Beyond
For Scarborough residents, this means the loss of a convenient urban IKEA option. The closure may also create longer wait times or delivery windows for online orders in the area, depending on demand and fulfillment logistics from other locations.
On the positive side, customers still have time to visit the STC store and take advantage of its full range of services before it closes in 2026. Shoppers who prefer in-person browsing or who need help planning home spaces can still access other IKEA locations nearby.