IKEA Sells 8 Massive China Stores in Strategic Pivot to Smaller Formats

Swedish furniture giant IKEA is making a historic pivot in its China strategy, listing eight of its massive store properties for sale on the open market. This move represents the company’s largest asset disposal since its entry into China nearly 30 years ago and signals a dramatic shift in how the global brand intends to reach local shoppers. Ingka Group, IKEA’s parent company, has enlisted international real estate agency JLL to manage the sale of these prime properties, located in eight major Chinese cities including Shanghai, Guangzhou, Tianjin, Harbin, Nantong, Xuzhou, Guiyang, and Ningbo. The properties range from 24,000 to 105,000 square meters, with the Shanghai Baoshan store being the largest at over 105,000 square meters. Combined, the eight vacant stores exceed 500,000 square meters of floor space, offering a rare and flexible acquisition opportunity for commercial investors. For over two decades, IKEA pursued an "asset-heavy" expansion in China, building large, multi-level showrooms on city outskirts. However, the evolving retail landscape, marked by global economic uncertainty, digitalization, and profound shifts in consumer behavior, has necessitated a strategic overhaul. IKEA China's revenue has seen a significant decline, dropping nearly 30 percent from its 2019 peak, a trend mirroring the slowdown in China's new housing market. Concurrently, online shopping has reshaped purchasing habits, particularly among younger generations. In response, IKEA permanently closed seven of its large-format stores during a restructuring in February 2026, with the Guiyang store having closed in 2022. The company is now embracing a more agile, "asset-light" business model, reaffirming China as a critical market for future growth. Moving forward, IKEA will concentrate on opening smaller, more accessible stores in urban centers. Over the next two years, more than 10 such specialized locations are planned, with Beijing and Shenzhen serving as key testing grounds. The company is also significantly boosting its digital presence, launching instant retail and fast delivery services on platforms like Taobao to integrate online convenience with urban showrooms. Industry observers are speculating on potential buyers for the vast properties. While warehouse-style retailers like Sam's Club or Metro are considered suitable due to the existing layout, real estate agents highlight broader possibilities. The prime locations make them attractive for long-term rental housing, community commercial spaces, cultural and tourism complexes, or even corporate headquarters. This strategic divestment underscores a global retail trend away from giant suburban stores towards swift, digital, and hyper-local shopping experiences.