Swedish furniture giant IKEA announced the closure of 7 physical stores in China recently, and on February 1st, the IKEA store in Harbin welcomed its final day before shutting down. With clearance discounts attracting a large number of customers, kitchenware, textiles, lighting fixtures, and plush toys were quickly sold out, and even the restaurant food was completely gone, creating a scene of frenzied consumption with items flying off the shelves.
According to a report by “China News Weekly,” on February 1st, many shoppers made a special trip to IKEA in Harbin to take advantage of the closing sale. The mall was packed with people, shelves in various sections were empty, and long queues formed at the checkout counters as the closing sale event heightened the atmosphere.
IKEA China previously announced the suspension of operations at 7 stores in Shanghai Baoshan, Guangzhou Panyu, Tianjin Zhongbei, Nantong, Xuzhou, Ningbo, and Harbin starting from February 2nd. At the same time, IKEA plans to open more than ten new small-format stores in the next two years, with the Dongguan store set to open in February, and the Tongzhou store in Beijing expected to begin in April.
IKEA China stated that the retail industry is undergoing a deep transformation in the face of global economic uncertainty, accelerated digitization, and changing consumer behavior. The closure of these stores is not due to an inability to continue operations but rather a proactive adjustment aimed at optimizing costs, improving efficiency, and realigning resources.
The company mentioned that consumers in the affected cities can still purchase IKEA products through other IKEA stores, as well as the official website, app, WeChat mini-program, and e-commerce platforms.
Since the 1960s, IKEA has been sourcing furniture from China, opening its first store in 1998. The brand has since built a strong influence among young consumers and the middle class in China, gradually becoming a symbol of modern home design and experiential shopping.
Some Chinese media analysis suggests that the closure of multiple large IKEA stores in China is not a coincidence but reflects the challenge faced by its traditional “big store + heavy assets” model in the changing local market environment.
On one hand, Chinese consumers’ home shopping habits are shifting from “buying a full set of furniture” to “fragmented, scenario-based needs” as the decrease in new home deliveries reduces the demand for large one-time furniture purchases. More consumers are inclined to quickly purchase small items online, weakening the customer base of large malls.
On the other hand, IKEA’s heavy asset layout and “large experiential shopping” model face increased cost pressures in the current market environment, while local brands pose fierce competition to IKEA through e-commerce, rapid logistics, and localized designs.
Additionally, local furniture brands are more flexible in terms of pricing, logistics, service, and product alignment, attracting consumers who may have previously favored IKEA.
Overall, the physical retail industry in China is facing challenges in sales growth. Due to ongoing real estate crises and concerns about job security and stagnant wages, consumer confidence remains low.