Finance
IKEA to close seven stores in China amid strategy shift
Published by Global Banking & Finance Review®
Posted on January 7, 2026
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 7, 2026
2 min readLast updated: January 20, 2026
IKEA will close seven stores in China to focus on online sales and smaller store formats, with new openings planned in Beijing and Dongguan by 2026.
SHANGHAI, Jan 7 (Reuters) - Furniture retailer IKEA is closing seven stores in China from February 2, it said in a statement on Wednesday.
The stores earmarked for closure include one in suburban Shanghai, another in Guangzhou, and several more in second-tier Chinese cities such as Nantong, Xuzhou and Harbin, IKEA said in the statement posted to its official WeChat account.
Retailers in general have been struggling to grow sales in China, where consumer sentiment remains muted following a prolonged property crisis and concerns about employment security and stagnant wages.
There are currently around 40 IKEA stores in mainland China, and the statement said five new stores of various sizes have recently opened.
China, the world's second-largest economy, accounts for around 3.5% of IKEA's global sales. With a growing percentage of sales in the country coming from online flagships, IKEA opened a new store on JD.com last August to help cultivate that online sales growth.
"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," IKEA said in its statement, adding that new store openings in Dongguan and Beijing were expected in the first half of 2026.
(Reporting by Casey HallEditing by Alexandra Hudson)
Consumer sentiment refers to the overall attitude of consumers towards the economy and their personal financial situation. It influences their spending and saving behaviors, impacting economic growth.
Online retail involves selling goods and services through the internet. It allows consumers to shop from home and has become increasingly popular, especially during economic downturns.
A retail strategy is a plan that outlines how a business will sell its products to consumers. It includes decisions on pricing, marketing, and store locations to maximize sales.
Market expansion is a growth strategy where a company seeks to increase its market share by entering new markets or increasing sales in existing ones. It often involves opening new locations or enhancing online presence.
Economic growth refers to the increase in the production of goods and services in an economy over time. It is often measured by the rise in Gross Domestic Product (GDP).
Explore more articles in the Finance category
