IKEA to Close 7 China Stores Amid 'Retail Strategy Shifts'

IKEA will shut down seven stores in China next month as the Swedish home-furnishings giant adjusts its physical retail footprint in response to changing consumer behavior and broader shifts in the retail landscape.

In a statement released today, IKEA China said it will "cease operations at seven offline locations: Shanghai Baoshan, Guangzhou Panyu, Tianjin Zhongbei, Nantong, Xuzhou, Ningbo and Harbin."

Customers in the affected cities will still be able to shop through other nearby IKEA malls, as well as via the company's official website, mobile app, WeChat mini-program, and flagship stores on Tmall and JD.com.

"The move comes as retailers face growing pressure from global economic uncertainty, rapid digitalization and profound changes in consumer habits," the company said.

IKEA emphasized that China remains one of its most important strategic markets. Its growth strategy shifts from broad expansion toward more targeted development. Beijing and Shenzhen have been identified as key cities for further experimentation.

IKEA said it will offer full support to employees affected by the closures and will continue investing in price reductions to provide more affordable home furnishing products and solutions.

Over the next two years, IKEA China plans to open more than 10 small-format stores. These include a new store in Dongguan, Guangdong Province, scheduled to open next month, and another in Beijing set to open in April. The company also said it will continue to strengthen its online business and invest in upgrading existing stores.

According to financial data released by IKEA in October last year, the company posted global retail sales of 44.6 billion euros (US$52.1 billion) in fiscal year 2025, down 1 percent from 45.1 billion euros a year earlier. Despite the decline, IKEA China President and Chief Sustainability Officer Pontus Erntell told The Paper that the company's omnichannel visitor numbers in China rose significantly during the 2025 fiscal year, which ran from September 2024 to August 2025. Total visits across all channels reached 477 million, up 4.7 percent year on year, while online sales increased by 2 percent.

IKEA China also said it will invest 160 million yuan (US$22.9 million) in fiscal year 2026, with about 70 percent of the funds allocated to price investments focused on the products most popular with Chinese consumers.