IKEA to close 7 China stores despite expansion plans

Weak consumer sentiment a key factor in shutdown.

Swedish furniture retailer IKEA will shut down seven stores across mainland China starting 2 February 2026, shifting its focus to targeted market cultivation from broad expansion, according to a Reuters report.

The retailer said on its official WeChat account that the closures will take place in suburban Shanghai and Guangzhou, as well as in second-tier Chinese cities such as Nantong, Xuzhou, and Harbin.

The move reflects ongoing challenges in China’s retail market, as consumer sentiment remains weak amid a prolonged property market downturn and broader economic uncertainties.

Despite the announced closures, IKEA has opened five new stores of various sizes and plans to open more than 10 additional outlets in key markets such as Beijing and Shenzhen over the next two years.

China accounts for around 3.5% of IKEA’s global sales, with a growing share of revenue in the country coming from online flagships, including a new store on JD.com launched in August 2025.