IKEA Restructures China Presence Amid Challenging Retail Landscape

IKEA plans to close seven stores in China by February 2, as part of a strategic shift in response to sluggish consumer spending. Despite these closures, new stores and online expansions are underway, reflecting IKEA's altered focus toward key markets like Beijing and Shenzhen for future growth.

Furniture giant IKEA has announced the closure of seven stores across China, effective from February 2, a decision highlighted in a recent corporate statement. The affected locations span suburban Shanghai, Guangzhou, and several second-tier cities such as Nantong, Xuzhou, and Harbin.

This move comes amid broader challenges facing the retail sector in China, where economic uncertainty and employment concerns have dampened consumer expenditure. Despite the closures, IKEA maintains a presence of about 40 stores in mainland China, with recent openings targeting smaller formats.

The Swedish retailer continues to adapt by bolstering its online footprint. A new digital store launched on JD.com exemplifies this strategy, focusing on precise market cultivation, especially in Beijing and Shenzhen. Further store expansions in Dongguan and Beijing are slated for early 2026.

(With inputs from agencies.)