UPDATE: IKEA has just announced the closure of seven stores across China as part of a significant strategic shift. The affected locations, including one in suburban Shanghai and another in Guangzhou, will cease operations starting February 2. Other closures will impact second-tier cities such as Nantong, Xuzhou, and Harbin.
This urgent decision comes as retailers face mounting challenges in China, where consumer sentiment has been sluggish following a prolonged property crisis, heightened employment concerns, and stagnant wages. With approximately 40 IKEA stores currently operating in mainland China, the company is pivoting from aggressive expansion to a more focused cultivation strategy.
IKEA revealed its plans in a post on its official WeChat account, emphasizing the need to adapt to changing market dynamics. The company stated, “We will shift from scale expansion to precise cultivation, exploring Beijing and Shenzhen as key markets.” As part of this strategy, IKEA intends to open more than 10 small stores within the next two years, aiming to enhance its presence in urban areas.
Despite the store closures, IKEA is not retreating from the Chinese market. The retailer has recently launched a new store on JD.com, reflecting a growing trend of online sales, which are becoming increasingly vital in the world’s second-largest economy. Currently, China accounts for about 3.5 percent of IKEA’s global sales.
Looking ahead, IKEA anticipates new store openings in Dongguan and Beijing in the first half of 2026. As they navigate these changes, the company is expected to focus on bolstering its online capabilities while strategically reducing its physical footprint.
Stay tuned for more updates on this developing story as IKEA reshapes its strategy in one of its key markets.
