Ikea has announced it will close seven of its 41 stores across China as it looks to shift to small-format outlets catering to a more targeted market. The move comes amidst low consumer spending and a weak property market.
Ikea as a brand is in many ways symbolic of the aspirations both of China’s middle class and also foreign companies looking for long term futures in the China market. The closure of so many Ikea stores feels like the beginning of the end of an era.
The weak consumer market and property market slump appears to have no end in sight. If people are not buying property, there is little need to buy furniture.