In-Depth Analysis of IKEA China's Closure of 7 Stores: Effects and Trends of Home Furnishing Retail's Shift to Online

Based on the latest search materials, I have prepared a systematic and comprehensive analysis report for you.

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On January 7, 2026, IKEA China officially announced that it will close 7 offline stores starting from February 2, 2026, marking the largest network adjustment in its 26 years in the Chinese market since entering in 1998 [1][2][3]. The stores to be closed include:

Store to be Closed	City	Features
IKEA Shanghai Baoshan Store	Shanghai	Suburban large store
IKEA Guangzhou Panyu Store	Guangzhou	Traditional ‘Blue Box’ model
IKEA Tianjin Zhongbei Store	Tianjin	Non-core business district
IKEA Nantong Store	Nantong	Second-tier city
IKEA Xuzhou Store	Xuzhou	Third-tier city
IKEA Ningbo Store	Ningbo	Eastern coastal city
IKEA Harbin Store	Harbin	Northeastern region

After the closures, IKEA will still have 34 offline customer touchpoints, 3 self-owned digital channels (official website, APP, WeChat Mini Program) and 2 e-commerce platform flagship stores (Tmall, JD.com) in China [1][4].

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1. Prolonged Downturn in the Real Estate Market
   • China’s real estate market has entered a period of in-depth adjustment, directly impacting home furnishing consumption demand
   • Demand for new home decoration has declined, and second-hand home renovation has become the main growth market

2. Profound Changes in Consumer Behavior
   • Younger consumers prioritize efficiency and are accustomed to “comparing prices online, experiencing offline”
   • Instant retail (30-minute delivery via Meituan, JD.com) has impacted traditional big-box stores
   • Consumers’ sensitivity to time costs has increased significantly [5]

Features of Traditional Model	Current Challenges
Large-scale stores located in suburban areas	Inconvenient transportation, high time cost
Mandatory circulation route design	Long walking distance, low experience efficiency
Heavy-asset operation	Declining per-square-meter efficiency, pressure on return on assets
Reliance on natural customer flow	Diversion by e-commerce, low customer conversion rate

Taking IKEA Tianjin Zhongbei Store as an example, consumer observations found that although weekend customer flow data is decent, most are nearby residents coming for leisure and cooling off, while the actual conversion rate for large furniture is not high, showing the characteristic of “high customer flow, low conversion” [5].

• Rise of Domestic Brands
  : Cost-effective local home furnishing brands are expanding rapidly
• Price War Pressure
  : In the 2024-2025 fiscal year, IKEA launched over 500 low-priced products annually, and in the 2026 fiscal year, it will invest 160 million yuan to launch over 150 more low-priced products [1]
• Diversion by E-commerce Platforms
  : The home furnishing category on platforms such as Taobao, JD.com, and Pinduoduo has grown rapidly

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IKEA’s onlineization process can be traced back to 2016, when online sales accounted for only about 4%. Since then, IKEA has accelerated its digital layout [6]:

Year	Online Sales Share	Key Initiatives
2016	~4%	Initiated organizational structure adjustment
2021	~26%	Full rollout of the IKEA APP
2022	~22%	Launched AI design application IKEA Kreativ

IKEA has established a complete omnichannel ecosystem:

• IKEA Official Website (Ikea.com)
• IKEA APP
• IKEA WeChat Shopping Mini Program

• Tmall Flagship Store
• JD.com Flagship Store (launched in 2025) [7]

1. Significantly Expanded Coverage
   : Reached over 1 billion consumers through online channels
2. Optimized Customer Acquisition Cost
   : Remarkable effect in online customer acquisition
3. Experience Empowerment
   : Realized self-service scanning and checkout in offline stores via the APP
4. Improved Distribution Network
   : “Online shopping, offline pickup” outlets have been set up in some regions

1. Experience Limitations
   : Large furniture still requires offline experience, which cannot be fully replaced online
2. High Logistics Costs
   : Distribution and installation of large home furnishing items remain pain points
3. Traffic Dependence
   : The cost of acquiring traffic from e-commerce platforms continues to rise

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IKEA clearly stated that it will shift from “scale expansion” to “precise deep cultivation”, and will open more than 10 small stores in Beijing and Shenzhen within the next two years [1][4]:

New Store	Expected Opening Time	Positioning
IKEA Dongguan Store	February 2026	Small store
IKEA Beijing Tongzhou Store	April 2026	Small store

• Community-based small stores with an area of approximately 300 square meters
• Focuses on one-on-one design and customization services
• Pilot Cities: Beijing, Shenzhen [1]

• Lower investment and greater flexibility for small stores
• Located in core business districts or near subway stations, with higher accessibility
• Complementary to the traditional “big-box” store matrix

1. Digital Upgrading
   : Leveraging China’s advanced innovation ecosystem, collaborating with local partners in digitalization and automation
2. Instant Retail Layout
   : Promoting supply chain and logistics automation to improve distribution and fulfillment efficiency
3. Cost Control
   : Optimizing costs, enhancing efficiency, and reallocating resources

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IKEA’s store closures are not an isolated case, but a microcosm of the systematic dilemmas faced by the entire home furnishing retail industry [5]:

• Red Star Macalline
  : Its heavy-asset model has encountered “backlash”, facing pressure from asset value revaluation
• Easyhome
  : It is also adjusting its store structure and exploring online-offline integration
• Industry Consensus
  : The traditional big-box store model is shifting from “scale supremacy” to “efficiency first”

Trend	Specific Performance
Channel Diversification	Coexistence of small stores, pop-up stores, e-commerce, and social e-commerce
Experience Upgrade	Shifting from “selling products” to “selling solutions”
In-depth Digitalization	AI design, intelligent recommendation, virtual experience
Community-oriented Layout	Close to communities, shortening service radius
Green Transformation	Circular economy, buyback and resale

Despite adjusting its store layout, IKEA clearly stated [7]:

• China remains one of the most important strategic markets
• Will continue to invest in the Chinese market
• Advance the “Growth+” strategy
  (Home Living Expert, Excellent Omnichannel Customer Experience, Agile and Efficient IKEA)

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IKEA’s closure of 7 stores is a strategic choice for active transformation, rather than passive contraction. Its core logic is:

1. Optimize Asset Efficiency
   : Close suburban big-box stores with low per-square-meter efficiency to improve overall return on investment
2. Get Closer to Consumers
   : Reach target customer groups more closely through small stores and online channels
3. Build Resilience
   : Establish a more adaptable business model amid economic uncertainty

• Competition in home furnishing retail has shifted from “number of outlets” to “operational efficiency”
• Omnichannel capability has become a core competitiveness
• Consumer experience and convenience are key battlefields

IKEA’s transformation practice shows that in the era of digitalization and profound changes in consumer behavior, traditional retailers must proactively seek change to maintain their advantages in the new competitive landscape.

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[1] Interface News - “IKEA China is evaluating disposal plans for closed store plots, but may face difficulties in selling” (https://www.stcn.com/article/detail/3577886.html)

[2] Yahoo Finance - “IKEA to close seven China stores from February 2026” (https://finance.yahoo.com/news/ikea-close-seven-china-stores-142102400.html)

[3] The Nation - “IKEA to shut seven large stores in China as it shifts to smaller formats” (https://www.nationthailand.com/business/corporate/40060932)

[4] Global Times - “IKEA restructures business in China, planning to shut down 7 malls, but launch over 10 small stores” (https://www.globaltimes.cn/page/202601/1352549.shtml)

[5] New Yellow River/Hualong Net - “Behind IKEA’s Closure of 7 Stores: The Inflection Point for the Home Furnishing Big-Box Store Model” (https://www.cqnews.net/web/content_1458758117170282496.html)

[6] Cinda Securities Research Report - “Online IKEA: Similarities and Differences” (https://pdf.dfcfw.com/pdf/H3_AP202310091601102498_1.pdf)

[7] IKEA China Official Newsroom - “Building the Future with Resilience: IKEA China’s Statement on Adjusting Store Layout” (https://www.ikea.cn/cn/zh/newsroom/corporate-news/yi-ren-xing-gou-jian-wei-lai-yi-jia-zhong-guo-guan-yu-tiao-zheng-men-dian-bu-ju-de-shuo-ming--pubf0e5691a)