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Ikea bets on China with $772 million investment

(Source: Bigstock )

Home furnishing retailer Ikea plans to invest RMB5.3 billion yuan (US$772.9 million) in China in the next fiscal year, starting next month, despite the instability of the market due to Covid-19 restrictions. 

The company said the investment will be used for digitalisation, expanding its footprint and operational development.

According to Xinhua, the home furnishing retailer has injected some $1.46 billion into the market in the past three years. 

The expansion plan in China will commence next month, opening a small scale in Eastern China, followed by a new store in Xi’an of Shaanxi province. 

Ikea China shut its store in southwestern Guizhou province in April, the first mainland closure since the chain entered the country in 1998, followed by the closure of the high-profile store in Shanghai’s Yangpu due to the Covid-19 pandemic situation.

The retailer operated 37 stores across the country as of June.

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