On January 7, 2026, IKEA China said it will shutter seven physical stores on February 2, 2026, after reviewing all customer touchpoints. The affected locations are Shanghai Baoshan, Guangzhou Panyu, Tianjin Zhongbei, Nantong, Xuzhou, Ningbo, and Harbin.
The pivot is from large-format expansion to more targeted growth, with Beijing and Shenzhen as key pilots. Over the next two years, IKEA will add more than 10 small-format stores nationwide, including Dongguan in February 2026 and Beijing Tongzhou in April 2026. It will also double down on e-commerce and invest in existing outlets to improve customer experience and workplace conditions.
IKEA entered mainland China in 1998 with a Shanghai Xuhui store, drawing young shoppers with massive showrooms and long queues. Since 2021, however, it has been pruning locations, prompting industry doubts about its fit in the market. Closures include Guiyang in April 2022—its first provincial-capital shutdown—and Shanghai Yangpu in July 2022, which reportedly struggled with site selection.
Data from Ingka Group shows IKEA China’s sales growth slowed from 17% in FY 2021 to 6.5% in FY 2023, trailing peers like India (31%) and Southeast Asia (22%).
