Ikea to close seven stores in China next month

Ikea will close seven offline stores in mainland China, amid an ongoing unprecedented transformation in the retail sector. 

After a comprehensive review and evaluation, Ikea China said the seven stores would stop operating from February 2, including the stores located in Shanghai, Guangzhou, Tianjin, Nantong, Xuzhou, Ningbo and Harbin.

"China has always been one of IKEA's most important strategic markets," said Ikea in its announcement published on Wednesday. 

"Currently, IKEA covers more than 1 billion consumers through its 41 offline customer stores, 3 self-owned digital channels and two flagship stores on e-commerce platforms in China, and is still exploring to further improve the omni-channel customer experience," said Ikea.

Ikea noted that the retail sector is undergoing an unprecedented transformation in the face of global economic uncertainty, the digital wave, and profound changes in consumer behavior. 

It added that Ikea is taking specific measures including transforming, closing, or adding business units to maximize the efficiency of every square meter of commercial space, thereby creating value for customers and the business.

Ikea also mentioned that it will shift towards "precision marketing" in the future, opening more than ten smaller stores in key cities including Beijing and Shenzhen, and strengthening its online channels.