IKEA will close seven of its large stores in China from 2 February, the company said. The Swedish retailer cited a restructuring to move resources closer to consumers.
Stores affected include locations in Shanghai, Guangzhou and Tianjin. IKEA said it plans to open around a dozen smaller-format stores in Beijing and Shenzhen over the next two years.
After the closures, IKEA said it will still operate 34 physical stores in China. It will also keep two flagship e-commerce shops and other digital channels.
The company said demand has weakened as China’s property downturn reduced new home purchases. It also pointed to stronger competition from lower-priced online brands.
IKEA said it is working with JD.com to offer instant delivery across seven Chinese cities.
