IKEA Scarborough Town Centre Closing 2026: Details & Alternatives

When IKEA opened its Scarborough Town Centre location in August 2023, the buzz was genuine — thousands showed up for the festivities, and the Swedish furniture giant called it a test of how smaller-format stores could serve dense urban neighbourhoods. Less than three years later, that experiment is ending. IKEA Canada announced in October 2025 that the Scarborough store will close in early 2026, citing a fundamental shift in how shoppers prefer to buy flat-pack furniture. The closure raises questions about the future of urban retail formats and leaves a Scarborough shopping centre already contending with tenant departures facing more vacancy.

Store Size: 80,000 sq. ft. · Closure Date: Early 2026 · Reason Cited: Shifting consumer behaviour · Location: Scarborough Town Centre, Toronto · Announcement Date: October 7, 2025

Is IKEA Leaving Scarborough Town Centre?

Yes. IKEA Canada confirmed on October 7, 2025 that its Scarborough Town Centre location will close in early 2026, marking the end of a short-lived urban-format experiment that launched in August 2023. The announcement came directly from the company’s Canadian newsroom, making it an official corporate decision rather than speculation.

Official Announcement Details

The decision was framed around broader retail shifts. “This decision has not been taken lightly,” said Selwyn Crittendon, CEO and Chief Sustainability Officer of IKEA Canada, in the official announcement. The statement continued that IKEA is “constantly renewing and improving our business in order to remain relevant in an ever-changing retail world.” The store employs 130 workers, with redeployment opportunities prioritized before any layoffs.

Selwyn Crittendon, CEO and Chief Sustainability Officer, IKEA Canada

“Even as we respond to market needs, we are committed to putting our people first.”

Impact on Local Shoppers

For Scarborough residents, the closure eliminates a convenient in-store option that had operated for just under three years. The store carried roughly 2,500 products for immediate purchase — a fraction of the 300,000+ items available through IKEA’s online catalog. Online traffic figures help explain the gap: IKEA.ca attracted 162.6 million visitors in the past year, compared to 33.8 million in-store visitors across all Canadian locations combined, according to Retail Insider’s reporting on the announcement.

The Scarborough store’s proximity to the North York IKEA location means customers do have a nearby full-size alternative roughly 15 kilometres away, though that store lacks the convenience of the mall-based format.

Why is IKEA Scarborough Closing?

IKEA’s official reason points to shifting consumer behaviour in the Greater Toronto Area, a pattern the company attributes to a broader migration toward online shopping and omnichannel retail. The announcement explicitly mentioned responding to “rapidly evolving retail landscape” and the need to adapt the business model accordingly.

Reasons from IKEA

Performance fell short of expectations, according to reporting from Retail Insider, which cited the shift toward online shopping as the primary factor. The Scarborough location was designed specifically for smaller-space urban living — a format meant to test whether IKEA could succeed in community shopping centres rather than stand-alone warehouse locations. That experiment did not meet the company’s internal benchmarks.

Broader Retail Trends

The Scarborough Town Centre mall itself has faced turbulence. Hudson’s Bay closed its STC location mid-2025 as part of a company-wide liquidation, and Decathlon shuttered its store around the same time as one of five Greater Toronto Area closures. The 1.3-million-square-foot mall, managed by Oxford Properties, now faces further vacancy with the IKEA departure.

Combined with Decathlon’s exit, IKEA’s closure leaves nearly 100,000 square feet of vacant space at the shopping centre, according to 6ix Retail’s coverage of the announcement. The pattern suggests the mall is struggling to retain anchor tenants as consumer behaviour continues shifting online.

How Big is IKEA Scarborough?

At 80,000 square feet, the Scarborough store was smaller than IKEA’s traditional format but larger than some urban experiments. For context, the downtown Toronto location at Yonge and Gerrard spans 66,000 square feet across two levels and opened in May 2022. Both represent a deliberate shift away from the 300,000+ square foot warehouse model that defined IKEA for decades.

Store Size and Format

The Scarborough store stocked approximately 2,500 products for immediate purchase — a curated selection versus the full inventory available for home delivery. This reflected the urban-format strategy: give customers a physical touchpoint without the overhead of a full warehouse. The store also featured a Swedish Deli with meatballs and veggie dogs, a signature element of IKEA’s in-store experience.

Comparison to Standard IKEA

Traditional IKEA stores operate as destination warehouses with 300,000+ square feet, extensive showrooms, and full inventory availability. The urban formats — including Scarborough and downtown Toronto — traded square footage for location convenience. The downtown Toronto store also operates cashless with self-checkout only, a model that reduced staffing costs but limited payment flexibility.

Where is IKEA in Scarborough Town Centre Located?

The store is located within Scarborough Town Centre, a 1.3-million-square-foot shopping mall managed by Oxford Properties. The address is at the intersection of Borough Drive and Progress Avenue in the former Toronto suburb, now part of the city’s east end. For customers who rely on public transit, the Scarborough Centre TTC station sits adjacent to the mall, making it accessible without a car.

Address and Directions

The mall sits at 300 Borough Drive, Toronto, Ontario. From Highway 401, take the Kennedy Road exit and head north to the mall entrance. For TTC users, the Scarborough Centre station on Line 2 connects directly to the mall’s lower level. The store is on the outer perimeter of the shopping centre, accessible from the main concourse.

Nearby Alternatives like IKEA North York

The nearest full-size IKEA location is in North York, approximately 15 kilometres away at 1 Promenade Circle. That store offers the full product range and traditional warehouse layout. IKEA Canada confirmed in its announcement that North York remains operational and serves as the primary alternative for GTA customers once the Scarborough store closes. Online ordering with home delivery and click-and-collect options through IKEA.ca provide additional pathways for customers who prefer digital purchasing.

What Happens After IKEA Scarborough Town Centre Closes?

IKEA Canada will operate 15 locations nationwide following the Scarborough closure, maintaining its presence in the Greater Toronto Area through the North York store and digital channels. The company has stated that lessons from this closure will inform future urban retail decisions, suggesting the format may not be abandoned entirely but refined based on performance data.

New IKEA Locations for 2026

Research notes indicate new IKEA stores are planned to open in the United States in 2026, though specific Canadian expansion beyond the current 15 locations has not been confirmed. The company’s omnichannel strategy emphasizes planning hubs, click-and-collect points, and the website as core pillars alongside physical stores.

Selwyn Crittendon, CEO and Chief Sustainability Officer, IKEA Canada

“We are constantly renewing and improving our business in order to remain relevant in an ever-changing retail world.”

Phone Number and Hours Until Closure

The store remains open until its final closure date in early 2026, with regular mall hours applying. For specific hours before closure, customers should check IKEA Canada’s website or contact the Scarborough Town Centre location directly. The 130 employees affected by the closure are being offered redeployment opportunities within other IKEA Canada locations.