SHANGHAI, January 7, 2026 – Global furniture retailer IKEA announced on Wednesday that it will close seven of its stores in China starting February 2, part of a strategic shift toward online sales and smaller store formats.

The stores scheduled for closure include locations in suburban Shanghai, Guangzhou, and several second-tier cities such as Nantong, Xuzhou, and Harbin. The announcement was made on IKEA’s official WeChat account.

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Strategic Shift Amid Sluggish Chinese Retail Market

China, IKEA’s second-largest market in Asia, currently hosts around 40 IKEA stores, contributing roughly 3.5% of the company’s global sales. Despite this, IKEA—like many international retailers—is facing challenges due to muted consumer sentiment, lingering effects of the property crisis, worries about job security, and stagnant wages.

“We will shift from scale expansion to precise cultivation, exploring Beijing and Shenzhen as key markets, and opening more than ten small stores in the next two years,” the company said.

This move aligns with IKEA’s increasing focus on digital sales, which now account for a growing share of revenue in China. The retailer opened its JD.com online store last August to tap into the expanding e-commerce market.

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Future Expansion Plans

Despite the closures, IKEA plans to open five new stores of varying sizes, including new locations in Dongguan and Beijing, scheduled for the first half of 2026. The company emphasized that the new openings will complement its online and small-format strategy, targeting densely populated urban markets with a focus on convenience and tailored offerings.

Retail analysts suggest that IKEA’s approach mirrors a broader trend in China, where international brands are shifting from large-scale expansion to smaller, strategically placed stores to adapt to evolving consumer behaviors and rising online shopping trends.

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Conclusion

IKEA’s decision to close seven stores in China signals a major strategy pivot from large-scale expansion toward digital growth and small-format stores, particularly in Beijing and Shenzhen. The move reflects the challenges facing international retailers in China’s current economic climate and highlights the importance of precise market targeting and online integration for sustained growth.