IKEA to shut 7 physical stores in China in February

IKEA is shutting its seven offline stores in mainland China in February amid economic uncertainties and changing consumer behaviour.

In an announcement on its official WeChat account, IKEA stated that following a comprehensive review and evaluation of its existing customer touchpoints, it has decided to cease operations at several locations, including stores in Shanghai, Guangzhou, Tianjin, Nantong, Xuzhou, Ningbo, and Harbin, effective 2 February.

Meanwhile, local customers can continue to purchase IKEA products at other stores in their city, as well as through the IKEA website, IKEA app, WeChat mini programme, and flagship stores on Tmall and JD.com.

IKEA said it will provide comprehensive support to all affected colleagues during this period through open communication and equitable, transparent processes.

This decision is a key step in IKEA's ongoing transformation in China, aimed at establishing a more resilient foundation for future business growth. This includes transforming, closing, or adding business units to enhance efficiency and value.

It will continue to advance the three strategic directions and development roadmap under its "Growth +" strategy. Firstly, through is brand positioning of  home living experts, IKEA seeks to deepen its emotional connection with Chinese consumers through the localised brand positioning "家給生活更多." It will also continue to invest in product pricing and focus on local relevance to offer affordable home products and solutions.

To provide an excellent omnichannel customer experience, IKEA will shift from scale expansion to targeted development in key markets such as Beijing and Shenzhen. Over the next two years, IKEA has planned to open more than 10 smaller stores, including the Dongguan store in February and the Tongzhou store in April. The company will also enhance its online presence and invest in existing stores to improve the shopping experience for customers and the work environment for employees.

Regarding the innovation ecosystem, IKEA will collaborate with local partners on digitalisation, automation, and the circular economy. These initiatives aim to streamline processes, reduce costs, and enhance speed and flexibility, ultimately empowering employees and better serving customers.

IKEA is also refining its omnichannel ecosystem through targeted investments, recently introducing new stores of various sizes, and renovating the Shanghai Xuhui store to blend home inspiration with social experience, making the brand more accessible to consumers.

China has long been one of IKEA's key strategic markets. The company began its sourcing operations in the 1960s and opened its first store in 1998, gradually establishing a complete value chain that includes product development, sourcing, production, logistics, retail, and digital innovation. Currently, it serves over one billion consumers through 41 physical locations, three digital channels, and two flagship eCommerce platforms in China.

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