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Ikea closes high-profile Shanghai store

(Source: Bigstock )

Swedish furnishing giant Ikea is set to close a store in Shanghai’s Yangpu district next month, the second it has shuttered in China within two months.

The closures are related to the instability of the Covid-19 pandemic situation in China, according to local publication Yicai. 

“Ikea China has conducted a comprehensive analysis of the long-term feasibility of Yangpu store, and is considering not retaining it,” the company said on its WeChat. 

However, the construction of its new shopping mall in Changning district will continue, according to the company.

Ikea China shut its store in southwestern Guizhou province in April, the first mainland closure since the chain entered the country in 1998. The retailer operates 37 stores across the country with five stores currently opening in Shanghai. 

Ikea follows AirBNB and Amazon to adjust their business model in the world’s second-biggest economy due to the unstable pandemic situation. The country’s retail sales last April marked the biggest contraction since March 2020 due to the Covid-19 pandemic. 

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