UPDATE: IKEA has just announced the closure of seven stores in China, effective February 2, 2026. This strategic shift marks a significant move from the company’s previous focus on expanding its retail footprint to a more targeted approach in key markets.
The affected locations include a store in suburban Shanghai, one in Guangzhou, and several others in second-tier cities such as Nantong, Xuzhou, and Harbin. This decision comes as retailers continue to face challenges in China, where consumer sentiment remains low due to ongoing economic pressures, including a prolonged property crisis and concerns about job security and stagnant wages.
IKEA currently operates around 40 stores in mainland China. Despite the closures, the company revealed plans to open five new stores of various sizes. Notably, IKEA is shifting its focus towards online sales, having launched a new flagship store on JD.com last August to boost its digital presence.
“We will shift from scale expansion to precise cultivation, exploring Beijing and Shenzhen as key markets, and opening more than 10 small stores in the next two years,” IKEA stated in a post on its official WeChat account. The company has also confirmed that new store openings in Dongguan and Beijing are anticipated in the first half of 2026.
This strategic pivot underscores IKEA’s commitment to adapting to the evolving Chinese market, where a growing percentage of sales is now generated online. The company’s proactive measures reflect the need to cater to changing consumer behaviors as it navigates a challenging retail environment.
As this story develops, the impact on local employment and the broader retail landscape will be closely monitored. Stay tuned for further updates on IKEA’s strategic initiatives and their implications in the competitive Chinese market.
