BEIJING: Ingka Group has recently appointed JLL, an international real estate agency, to exclusively sell eight self-owned IKEA store properties in China, as the retailer shifts toward a small-format store strategy in the country.
The portfolio includes former IKEA stores in Shanghai, Guangzhou of Guangdong province, Tianjin, and Harbin of Heilongjiang province, with a combined floor area exceeding 500,000 sq m, according to JLL.
The sale follows a series of store closures as IKEA reviews its physical retail network in China.
The company shuttered seven locations in February, including stores in Shanghai, Nantong and Xuzhou of Jiangsu province, Ningbo of Zhejiang province, and Harbin.
The Guiyang property, also included in the sale package, closed in 2022.
Ingka Group told Jiemian News, a Shanghai-based media outlet, that the disposal is part of its effort to optimise its omnichannel retail ecosystem and improve operational efficiency.
The company said that future plans for discontinued properties will depend on individual project conditions, market developments, and overall resource allocation.
The assets being marketed are fully built IKEA retail facilities with independent structures and clear ownership status.
The properties have been vacated and have no lease restrictions or ownership disputes, allowing buyers to complete transfers quickly after agreements are signed, JLL said.
The properties could be converted into rental housing, community retail, cultural and tourism projects, or corporate offices.
The offering comes as the commercial property market faces pressure from changing consumer habits, rising demand for mixed-use developments, and the restructuring of large-format retail spaces.
IKEA said China remains a strategic market and that it plans to expand smaller-format stores, particularly in Beijing and Shenzhen. — China Daily/ANN
