IKEA to close 7 physical stores in China, moves toward small-format expansion

China – IKEA will close seven of its physical stores across major Chinese cities as part of a strategic revamp aimed at driving long-term, sustainable growth in the country.

According to China Daily, the closures include stores in Shanghai’s Baoshan district, Guangzhou’s Panyu district, and Tianjin’s Zhongbei town, as well as Nantong and Xuzhou in Jiangsu province, Ningbo in Zhejiang province, and Harbin in Heilongjiang province.

Customers in these cities will continue to be served through nearby IKEA stores and digital channels, including its website, app, WeChat mini-program, and flagship stores on major e-commerce platforms, the company said.

With the store closure, the Swedish budget furniture retailer also confirmed it will open more than 10 small-format stores over the next two years. The company plans to shift from scale-based expansion to precision-driven market penetration, prioritising Beijing and Shenzhen.

In a report by Global Times, more than 10 small-format stores are scheduled to open in Beijing and Shenzhen over the next two years, including IKEA Dongguan in February 2026 and IKEA Tongzhou in April 2026, the company said. It added that it will continue to enhance its online presence and invest in existing stores to improve experiences for customers and staff.

The company said the decision is aimed at building a resilient foundation for future growth. 

In a statement quoted by Global Times, IKEA highlighted the importance of the Chinese market, saying, “China is and will continue to be one of the most important and strategic markets for IKEA,” and that “IKEA is committed to long-term and healthy growth in China, developing its business in a sustainable way.”

“With the comprehensive review of our existing channel matrix, we have decided to stop operating seven offline touchpoints starting from February 2, 2026, including IKEA Shanghai Baoshan, IKEA Guangzhou Panyu, IKEA Tianjin Zhongbei, IKEA Nantong, IKEA Xuzhou, IKEA Ningbo and IKEA Harbin,” the company said in a statement to Global Times on Wednesday.

Currently, IKEA reaches a potential customer base of around 1 billion across China through 41 offline shopping malls, three owned digital channels, and two stores on major e-commerce platforms, while continuing to explore ways to enhance the omnichannel customer experience, the company added.