Ikea China opened its first small-format store in the Tongzhou district of Beijing on April 30, as the Swedish home furnishing giant continues to expand its footprint in China's capital and deepen its omnichannel strategy.

The Tongzhou store, part of Ikea's broader effort to integrate more closely with consumers' daily lives, spans roughly 1,500 square meters and features 20 showrooms designed around home scenarios.

Targeting young couples and families, the store highlights multifunctional living rooms, efficient kitchen storage, and child-friendly spaces, while offering professional one-on-one design consultations. Customers can complete the full journey — from design advice to product selection and installation bookings — on-site.

"Beijing has always been one of Ikea's priority markets in China," said Pontus Erntell, president of Ikea China and chief sustainability officer. "Through diverse formats like small-format stores, we hope to enter the familiar living scenes of more consumers, allowing Ikea's products and services to reach more families within a closer radius."

The store also includes over 1,500 products, from furniture to home accessories, alongside a Swedish food station.

The opening follows the furnishing company's rollout of design and order centers and other small-format stores in Beijing's Changping district and Shenzhen, Guangdong province, part of a strategy to respond to changing consumer behaviors that demand convenience, inspiration and flexibility in home furnishing solutions.

The company plans another small-format store in Chaoyang district. As of January, Ikea China operates 41 customer-touching points, three operational digital channels and two official stores on e-commerce platforms.

As shoppers are more inclined to value convenience, speed and affordability, trips to large suburban Ikea stores are no longer a default choice. Starting from February this year, Ikea said it will close seven large-sized stores.

Price remains a key focus. Ikea said that about 160 million yuan ($23.5 million) investment in fiscal 2026 will be used to lower prices on its best-selling products. The retailer plans to introduce more than 1,600 new home products over the coming fiscal year, focusing on "bedroom" and "kitchen".

Globally, Inter Ikea Group reported total revenues of 26.3 billion euros ($30.9 billion) for fiscal 2025, slightly down from 26.5 billion euros in fiscal year 2024, with sales volumes up and gross margins normalizing after prior price reductions. Ikea retail sales amounted to 44.6 billion euros, versus 45.1 billion euros in the previous year, reflecting higher volumes but lower profitability due to increased sourcing costs.