IKEA's parent company, Ingka, has commissioned JLL to sell vacant stores in eight Chinese cities, marking IKEA's largest concentrated disposal of self-owned assets in nearly 30 years since entering the Chinese market, according to mainland media reports.
The eight vacant stores are located in Shanghai, Guangzhou, Tianjin, Harbin, Nantong, Xuzhou, Guiyang, and Ningbo. The Guiyang IKEA store ceased operations as early as 2022, while the other seven have ceased operations since February of this year.
According to JLL, the assets have been fully cleared, are free of lease restrictions, and can be sold on an 'as-is' basis. All eight assets are located in mature business districts or key development areas in their respective cities. The buildings are well-suited for various uses, including long-term rental apartments, community commercial spaces, cultural and tourism complexes, or corporate headquarters.
Reports said that IKEA China's sales in fiscal year 2024 decreased by 7.6 percent year-on-year, a reduction of over 30 percent compared to its peak in 2019. IKEA has begun to shift towards smaller stores and e-commerce as new growth drivers.
In April, IKEA opened its first small-format store in Beijing, with plans to launch more than 10 similar outlets over the next two years. Furthermore, on July 1, IKEA China piloted Taobao Flash Sale, the e-commerce giant's instant retail and on-demand delivery service, in Hangzhou, Beijing, and Shenzhen.
