Ikea Mulling Shutdown Of Another Store In China

According to Laura He and Michelle Toh of CNN Business, Ikea has already closed one shop in mainland China this year and may close another in Shanghai in early July.

Photo Insert: Ikea, Beijing

In reaction to changing purchasing patterns during the pandemic, the Swedish furniture and home goods firm said Monday that it was considering closing its store in the Yangpu neighborhood of the city.

"In order to better meet consumers' growing demand for online consumption and services, as well as the further preference for convenient delivery accelerated during the epidemic, Ikea China will introduce customer touchpoints in the Shanghai market," it said in a statement posted on WeChat.

"However, ... Ikea China has conducted a comprehensive analysis of the long-term feasibility of Yangpu Store, and is considering not retaining it," it added.

Several Western companies have recently announced that they are rethinking their business in the world's second largest economy, partly due to the pandemic's impact and Beijing's tough zero-COVID policy.

Ikea originally opened its doors in China in 1998, in Shanghai, where it now has five locations, including the Yangpu location. In China, the corporation has 37 locations.

Nike deactivated its Run Club app in China last week and announced that it would launch a "localized" platform for Chinese runners in the future. Amazon stated earlier this month that it would close its Kindle storefront in China and stop selling Kindle devices to stores. Airbnb also intends to remove all of its listings in the country and focus on outbound travelers instead.

The decision was taken due to rising expenses, which were exacerbated by COVID-19.

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