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Danish home furnishings retailer plans to close seven stores in mainland China starting next month as part of a strategic shift from broad expansion to targeted development, with key markets in Beijing and Shenzhen.
The company announced today that it will shut its physical locations in Guangzhou, Harbin, Nantong, Ningbo, Shanghai, Tianjin, and Xuzhou effective February 2. Despite these closures, it will maintain 41 outlets across China and continue to reach over a billion customers through online platforms.
Customers in the affected cities will still be able to purchase products and access services via online channels or by visiting stores in other locations. The company emphasized that China remains one of its most vital strategic markets.
In the upcoming two years, plans include opening more than 10 smaller stores, with new outlets scheduled in Dongguan come February and in Beijing’s Tongzhou district in April.
The company will also invest approximately 160 million yuan (around $22.9 million) in fiscal year 2026, with 70% dedicated to popular product selections for customers.
In fiscal 2025, China’s business contributed over 25% of the company’s total revenue. Last August, it launched a presence on JD.com, a major Chinese e-commerce platform.
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