Ikea's Strategic Shift in China
Monday, 2026/01/12175 words3 minutes627 reads
Ikea, the multinational furniture retailer, is adapting its strategy in China due to economic challenges and changing consumer behavior. The company has decided to close seven large stores in various cities across the country, including Shanghai, Guangzhou, and Tianjin. This decision comes as a response to the weak property market and sluggish consumer spending in China.
However, Ikea is not retreating from the Chinese market. Instead, they are shifting their focus to a more targeted approach. The company plans to open more than 10 small-format stores in key cities over the next two years. These new stores will be located in major urban centers like Beijing and Shenzhen.
Ikea's new strategy emphasizes the furniture-replacement market rather than new-home furnishings. They are also strengthening their online presence and investing in existing stores. To attract more customers, Ikea China plans to invest 160 million yuan and reduce prices on over 150 products, with a focus on their bestsellers.
This strategic shift reflects Ikea's commitment to the Chinese market while adapting to local economic conditions and consumer preferences.
