IKEA to shut seven large stores in China as it shifts to smaller formats
IKEA will close seven large-format stores in China on February 2, 2026, as it pivots to smaller city sites and boosts online sales via JD, Tmall and WeChat.
IKEA, part of Ingka Group, said it will close seven large-format stores in mainland China from February 2, 2026, as it overhauls its retail approach in response to weaker demand and changing shopping habits.
Stores affected
IKEA said operations will end at the following locations:
- Shanghai: Baoshan
- Guangzhou: Panyu
- Tianjin: Zhongbei
- Nantong
- Xuzhou
- Ningbo
- Harbin City
Not a withdrawal from China
The company described the move as an “optimisation” of its store network, stressing it will continue operating in China while reallocating resources to channels “closer to consumers”.
Why IKEA is changing course
The shift comes as retailers face subdued consumer spending linked to China’s prolonged property downturn, while competition from lower-priced domestic brands and online-first shopping continues to intensify.
IKEA said it will increasingly prioritise smaller, city-centre formats and strengthen its omnichannel push, including digital sales and delivery services through major platforms such as JD.com, Tmall and WeChat.
What’s next
IKEA said it plans to open more than 10 small-format stores over the next two years, focusing on Beijing and Shenzhen, with new openings expected in Dongguan (February 2026) and Beijing (first half of 2026).
After the closures, IKEA said it will still operate 34 physical stores in mainland China, alongside its e-commerce and other digital channels.
