Multinational furniture retailer Ikea says it will open its first small-format store in Beijing on Thursday, aiming at convenience and efficiency that analysts believe could lift footfall by bringing the brand closer to consumers amid shifting trends.

The move comes after the company shut seven large outlets across mainland China in early February, as it grapples with the country’s rapidly changing consumer trends and declining demand for new-home furnishing amid a sluggish property market.

Located in Beijing’s eastern Tongzhou district’s Wanli commercial complex, the new store spans about 1,500 square metres – far smaller than Ikea’s standard outlets measuring 30,000 square metres. It would have 20 display areas and mainly target young couples and families with kids, Ikea said on its WeChat account on Wednesday.

“Footfall at Ikea’s smaller-format stores could improve, given their locations closer to residential areas and transport hubs. This makes them more convenient for consumers to visit compared with large-format stores,” said Jay Lau, an analyst at S&P Global Ratings.

“These smaller stores are likely to focus on design services and curated product selections, rather than maintaining extensive on-site inventory. This approach aligns with Chinese consumers’ preference for differentiated experiences and service-oriented shopping.”

Ikea, the world’s largest furniture and home furnishing retailer, entered the Chinese market in 1998. It said Tongzhou district was becoming increasingly prominent as Beijing’s municipal administrative sub-centre, with a relatively young population and rising share of family households.