On January 7th, 2026, the IKEA China Information Center announced that starting from February 2nd, 2026, it will be closing seven stores including those in Baoshan, Shanghai; Panyu, Guangzhou; and Zhongbei, Tianjin. This news came as a bombshell in the Chinese home furnishings market, causing significant waves of discussion and speculation.
IKEA China stated that after a comprehensive review and evaluation of their current customer touchpoints, they have made the decision to cease operations at seven offline stores including the ones in Baoshan, Shanghai; Panyu, Guangzhou; Zhongbei, Tianjin; Nantong; Xuzhou; Ningbo; and Harbin starting from February 2nd, 2026.
According to IKEA China, IKEA began its procurement business in China in the 1960s. In January 1998, IKEA opened its first store in mainland China in Xuhui, Shanghai.
Since then, with its standardized large store model, IKEA quickly gained popularity among consumers. Its “one-stop shopping experience,” immersive scene displays, and low-price strategies have made IKEA a top choice for countless Chinese families in home furnishings.
This wave of store closures is not the first time IKEA has downsized its presence in the Chinese market. In 2020, IKEA closed stores in Guiyang and Yangpu, Shanghai, and in 2025, it shut down the Jing’an City store in Shanghai.
IKEA will now shift its strategy by reducing the number of large stores and increasing the number of smaller stores. They will close traditional “big blue box” stores and focus on opening small stores under 1500 square meters in core business districts. Over the next two years, they plan to add more than 10 new stores, including the Dongguan store opening in February 2026 and the Tongzhou store opening in April.
A report by Southern Industry Watch on January 7th highlighted that this sudden wave of store closures is a microcosm of the intensifying competition in the Chinese home furnishings market. The “Depth Integrated Media” public account on Baidu pointed out that IKEA’s plight fundamentally stems from the downturn in the real estate cycle impacting the home furnishings industry.
Data from the National Bureau of Statistics shows that in 2025, national commercial housing sales area decreased by 18.3% year-on-year, with second-hand housing transactions accounting for 42%. While there is an increased demand for renovation of existing homes, the average unit price for renovation of existing homes has dropped by more than 50% compared to new home renovations.
On various social media platforms, many netizens expressed their disappointment over the closure of these beloved stores, lamenting the loss of a convenient shopping destination for furniture and home goods. Some remarked on how these stores provided inspiration for home decor, whether it was decorating a rental after graduation or setting up a new home after marriage, and the affordability and practicality of the items available, not to mention the popular 1 RMB ice cream treat for a refreshing break during shopping.
In recent years, with the ongoing economic downturn in China and weak domestic demand, IKEA pledged in September of last year to maintain lower furniture prices in China to attract budget-conscious consumers and withstand the price wars from local competitors.