Ingka Group, which holds Ikea’s retail operations, has appointed property consultancy JLL as the sole sales agent for eight retail sites across mainland China.
According to the South China Morning Post, this marks the retailer’s largest property disposal since entering the Chinese market close to 30 years ago.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Seven of the store buildings are former Ikea outlets that ceased operating in February. The remaining property, located in Guizhou, has remained unoccupied since its closure in 2022.
According to JLL, each of the eight properties is fully owned outright, sits empty, and has no ongoing lease obligations attached, allowing for immediate handover to buyers.
The company has pointed to possible alternative uses for the sites, including rental housing, neighbourhood retail hubs, cultural spaces or corporate office premises.
Ikea China described the disposal as part of a wider push to review and simplify its omnichannel operations for improved efficiency, as referenced in the report.
The move follows continued weakness in China’s property market alongside reduced consumer spending, factors that have both affected demand for the retailer’s products.
In February, Ikea had already indicated a move away from opening large stores, instead prioritising smaller-format locations to deepen its presence in existing markets, with more than ten such stores planned over the coming two years, primarily in Beijing and Shenzhen.
At the same time, the company has been expanding rapid delivery services in China, launching quick delivery via Taobao Shangou in Beijing, Shenzhen and Hangzhou on 1 July, building on a partnership established in January with JD.com.
Separately, Ikea India is targeting a fourfold rise in revenue to Rs80bn ($831.8m) by 2030, to be driven by faster store rollout and a growing e-commerce push.
