IKEA has announced it will close its small-format store at the Scarborough Town Centre shopping mall in Toronto sometime early next year.
The furniture retailer states that shifting consumer behaviour toward online shopping, combined with the limited range of products that could be offered at the smaller store, resulted in weaker-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,” Selwyn Crittendon, CEO and Chief Sustainability Officer, IKEA Canada, said in a statement.
“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 small-format store opened in August 2023. The location is expected to remain open until a final closing date is determined.
IKEA says the store employs 130 people.
The retailer says it aims to minimize the impact of the closure as much as possible for employees, including exploring available options in other IKEA locations.