Ikea China Store Closures 2026: Shifting to Small-Format Amid Slump

The furniture giant is packing its bags—at least partially. Ikea has announced it'll close seven major stores across mainland China. It's a clear signal of how the country's prolonged property crisis and cooling consumer appetite are hitting global retail legends.

Ikea China Store Closures 2026: A Strategic Pivot Amid Headwinds

According to the South China Morning Post, the Swedish retailer plans to cease operations at seven locations starting February 2, 2026. The affected stores are situated in Shanghai, Guangzhou, Tianjin, Nantong, Xuzhou, Ningbo, and Harbin. This sweeping move follows a comprehensive review of its Chinese operations.

The main culprits? A bruising property market slump and sluggish consumer spending. Since furniture sales are heavily tied to home purchases, the lack of real estate movement has squeezed demand. Additionally, China's hyper-advanced online marketplace has left little breathing room for massive, suburban brick-and-mortar outlets.

From Mega-Stores to Urban Small Formats

It's not a total retreat. Ikea is trading scale for precision. The firm plans to open more than 10 small-format outlets over the next two years, prioritizing high-density locations like Beijing and Shenzhen.

• New small-format store to debut in Dongguan next month
• Beijing's Tongzhou district scheduled for a launch in April