Ikea parent company sells eight China properties after store closures

Ikea’s parent company, Ingka Group, is selling eight retail properties in mainland China, marking its largest asset disposal since entering the market nearly 30 years ago. The company has hired property consultancy JLL as the sole sales agent for the sale. Seven of the properties were Ikea stores that closed in February. The eighth site, located in Guiyang in Guizhou province, shut down in 2022 and has been empty since then. Ikea first opened stores in China in 1998 and has expanded to over 30 locations. The recent closures reflect a shift in the company’s strategy as it adapts to changing consumer habits and economic conditions. The decision to sell these properties comes as part of a broader review of its real estate portfolio. Ingka Group has not disclosed the expected sale price or timeline. The move is seen as a way to free up capital for investment in other areas, such as online sales and smaller city-center stores. China’s furniture market has become increasingly competitive, with local brands and e-commerce platforms gaining ground. Ikea continues to operate its remaining stores in major cities like Beijing and Shanghai. The sale of these properties does not affect its ongoing operations in the country.