Ikea will close seven of its 41 outlets in mainland China as weak property markets and low consumer spending weigh on demand, reports Hong Kong's South China Morning Post.

Ikea China said the closures will take effect from February 2 after a review of operations. Stores in Shanghai, Guangzhou, Tianjin, Harbin, Ningbo, Xuzhou and Nantong will shut.

The company plans to open a new small-format store in Dongguan in February and another in Beijing in April, signalling a shift in strategy.

Fan Xinyu, assistant professor of economics at Cheung Kong Graduate School of Business, said the move shows Ikea is moving away from large-scale expansion to focus on targeted customer demand.

Commented China Economic Review: "Ikea looks to shift to small-format outlets catering to a more targeted market. The move comes amidst low consumer spending and a weak property market.

"Ikea as a brand is in many ways symbolic of the aspirations both of China's middle class and also foreign companies looking for long term futures in the China market. The closure of so many Ikea stores feels like the beginning of the end of an era.

"The weak consumer market and property market slump appears to have no end in sight. If people are not buying property, there is little need to buy furniture."