The furniture giant will be closing seven of its stores from today.

11:46, Mon, Feb 2, 2026 Updated: 11:48, Mon, Feb 2, 2026

Ikea Store

IKEA opened its first store in China in 1998 (Image: Getty)

Swedish furniture giant IKEA announced in a statement that it will be closing seven of its stores across mainland China from February 2. The furniture retailer has been facing challenges from China’s slowing property market and weakening consumer spending, which have weighed on demand for its products. Following a comprehensive review of its existing channel matrix, the retailer has confirmed it will be closing IKEA Shanghai Baoshan, IKEA Guangzhou Panyu, IKEA Tianjin Zhongbei, IKEA Nantong, IKEA Xuzhou, IKEA Ningbo and IKEA Harbin

IKEA said it will provide comprehensive support to all staff impacted by the closures during the transition. Founded in Sweden in 1943, IKEA started its first sourcing activity in the China market in the 1960s, and opened its first store in the country in 1998. 

IKEA Shanghai Xuhui Store at night

The Xuhui store has been redesigned (Image: Getty)

IKEA currently runs 41 offline locations, alongside multiple e-commerce channels on JD.com and Tmall. Despite the closures, the company emphasised that China remains a strategic market and will continue to be a central focus for its growth.

As part of a broader strategy shift, IKEA plans to move away from large-scale store expansion and focus on more targeted, small-format outlets designed to cater to specific customer needs.

Over the next two years, the company intends to open more than 10 smaller stores in key cities, including Beijing and Shenzhen.

Two new locations are already scheduled with one in Dongguan set to open in February and another in Beijing’s Tongzhou district which is expected to open its doors in April.

The company’s recent developments include the redesigned Xuhui store, the opening of five new stores of varying sizes across China, and the launch of its official presence on JD.com.

IKEA said in its statement: "Faced with global economic uncertainties, the wave of digitalization, and profound changes in customer behaviour, the retail industry is undergoing an unprecedented transformation.

"IKEA continuously assesses and optimizes its business portfolio, footprint, and operational structure on a global level to stay more relevant to customers. Specific actions include transforming, closing or adding business units to make every square meter work harder to deliver greater value for both our customers and business."

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It added: "We will shift from scale-based expansion to precision-driven penetration, starting from Beijing and Shenzhen as the prioritized markets.

"More than 10 small format stores will be opened in upcoming two years in Beijing and Shenzhen, including the new IKEA Dongguan store in February 2026, and IKEA Tongzhou store in April. We will also continue to enhance online presence and invest in existing stores to make them better for customers and co-workers."