US EditionIKEA to close seven stores in China amid strategy shift
IKEA will close seven stores due to economic challenges and shift to over 10 small-format stores and online sales to target specific customer groups, the company said.
- On Wednesday, Ikea announced it will close seven standard-sized stores in mainland China and shift its China strategy from scale expansion to precise cultivation.
- Muted consumer demand and property weakness have dampened China's consumers, while a highly developed online market has squeezed physical retailers, prompting IKEA's JD.com flagship.
- The affected cities include Shanghai's Baoshan district, Guangzhou, Tianjin, Nantong, Xuzhou, Ningbo and Harbin across eastern and northeastern mainland China.
- IKEA will prioritise small-format growth by opening more than 10 small stores over two years, with near-term openings in Dongguan next month and Tongzhou district in Beijing in April.
- China represents about 3.5 per cent of IKEA's global sales and the group operates about 40 IKEA stores in mainland China, marking a shift from IKEA's immersive in‑store experience to targeted smaller outlets.
20 Articles
20 Articles
The Swedish giant of furniture and decoration Ikea has decided to cease the activity of seven of its establishments in different cities in China as of February 2, while changing the focus of its expansion in the country towards the key markets of Beijing and Shenzen, with the planned opening of more than a dozen small-format shops in the next two years."This decision is an important step in Ikea's profound transformation in China, whose aim is t…
Ikea to Close Seven China Stores to Focus on Biggest Markets
Ikea to Close Seven China Stores to Focus on Biggest Markets - The Swedish furniture giant is pivoting from large-scale expansion to a narrower strategy focused on key cities like Beijing and Shenzhen as consumer tastes shift and challenges emerge in the global retail landscape
Newtalk News: In recent years, China's economic development has gradually stagnated, and more and more foreign companies have chosen to reduce their market share in China or even withdraw from China altogether, which has had a huge impact on China's economy and employment. Recent reports indicate that prominent foreign companies, including Swedish home furnishing retailer IKEA and Italian tire manufacturer Pirelli, are taking steps to sever ties…
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