IKEA to close seven stores in China and shift to smaller outlets.

IKEA will close seven large stores in China from Feb. 2 and will refocus on smaller-format shops and online channels while continuing to operate 34 physical stores and two flagship e-commerce shops.

IKEA will close seven of its large blue-box stores in China and pivot toward smaller-format outlets, the company said. Operations at locations including Shanghai, Guangzhou and Tianjin will end from Feb. 2. The retailer described weakening demand tied to China's prolonged property slump and rising competition from lower-priced online brands as reasons for the change. Key facts: - Seven large-format IKEA stores in China will close, with operations ending from Feb. 2, the company said. - After the closures, IKEA will continue to operate 34 physical stores, two flagship e-commerce shops and other digital channels in China. - IKEA plans to open about a dozen small-format stores in Beijing and Shenzhen over the next two years. - The company said it is working with JD.com to enable instant delivery of its products across seven Chinese cities. Summary: The restructuring redirects resources to channels closer to consumers and aligns with IKEA's global push for smaller local outlets and faster delivery. The company has announced store-closure dates and plans for new small-format openings and a delivery partnership with JD.com over the coming two years. Undetermined at this time are further operational or financial details beyond those announced.