Building a Resilient IKEA China for Future Growth

Statement on Store Network Optimization

China is and will continue to be one of the most important and strategic markets for IKEA. IKEA started its first sourcing activity in the China market in the 1960s, and opened the first IKEA store in 1998. Since then, IKEA has built a complete value chain covering product development, sourcing, production, logistics and distribution, retail stores, and digital innovation, etc. and also transformed from a "cash-and-carry" model into a fully integrated omnichannel retailer through continuous investment, learning, and evolution, Currently, IKEA is reaching a potential customer base of 1 billion people across China with 41 offline customer meeting points, three owned digital channels, and two  stores on major e-commerce platforms, while still exploring to constantly enhance the omni customer experience.

Through the journey, IKEA has been deepening its understanding of and connection with the many people by providing affordable, functional home furnishing solutions for everyday life. IKEA is committed to long-term and healthy growth in China, developing its business in a sustainable way.

As a global brand with a history of over 80 years, IKEA has always adhered to creating value for customers, industry, and society through its resilient development. Faced with global economic uncertainties, the wave of digitalization, and profound changes in customer behavior, the retail industry is undergoing an unprecedented transformation. IKEA continuously assesses and optimizes its business portfolio, footprint, and operational structure on a global level to stay more relevant to customers. Specific actions include transforming, closing or adding business units to make every square meter work harder to deliver greater value for both our customers and business.

In China, IKEA is also consistently re-evaluating and optimizing its omnichannel ecosystem to achieve greater efficiency and better outcomes through more targeted and flexible investments. The recent initiatives include the re-designed Xuhui store which combines home inspiration with social experience, five new stores of varying sizes across China, and the newly launched presence on JD.com, all making IKEA more accessible to customers.

With the comprehensive review of our existing channel matrix, we have decided to stop operating seven offline touch points from 2nd February, including IKEA Shanghai Baoshan, IKEA Guangzhou Panyu, IKEA Tianjin Zhongbei, IKEA Nantong, IKEA Xuzhou, IKEA Ningbo and IKEA Harbin. Customers can continue to experience IKEA through the remaining stores in the same cities (e.g., Shanghai, Guangzhou, Tianjin), or through omni channels like IKEA website, IKEA Apps, IKEA WeChat shoppable mini-program, Tmall and JD flagship stores. Our vision of creating a better everyday life for consumers in these cities and surrounding areas remains unchanged.

During the transition period, we will provide comprehensive support to every affected co-worker through open communication and a fair, transparent process. Our co-workers, values, and culture are the foundation of the sustainable development of IKEA.

The decision is an important step of the transformation journey of IKEA in China to build a resilient foundation for the business growth in the future. We’ll continue to drive the “Growth+” strategy which outlines a clear roadmap in three strategic directions.

Home Furnishing Expertise. We aim to deepen emotional connections with people across China through the new localized brand positioning: Home is More Than You Think. Our commitment remains to provide affordable home furnishing products and solutions by keeping investing in pricing and maintaining a strong focus on local relevance.

Outstanding Omni Customer Experience. We will shift from scale-based expansion to precision-driven penetration, starting from Beijing and Shenzhen as the prioritized markets. More than 10 small format stores will be opened in upcoming two years in Beijing and Shenzhen, including the new IKEA Dongguan store in February 2026, and IKEA Tongzhou store in April. We will also continue to enhance online presence and invest in existing stores to make them better for customers and co-workers.

Agile and Efficient IKEA. We will leverage China’s advanced innovation ecosystem and collaborate with leading local partners in digitalization, automation and circularity. These capabilities will enable us to streamline processes, reduce costs, and enhance speed and flexibility in empowering our people and serving our customers.

At IKEA China, we believe that true growth is not just about performance today—it’s about building the resilience to transform, adapt, and thrive across cycles, and it’s also a promise to grow with China.