(Yicai Global) June 13 -- Swedish furniture giant Ikea will close one of its five stores in Shanghai, marking its second outlet termination in the mainland this year amid an accelerating shift to online shopping due to the Covid-19 pandemic.

The two-year-old store in Yangpu district will shut its doors on July 7, the unit of Ingka Group, which has its headquarters in the Netherlands, said in a statement on WeChat today. The decision was made after comprehensively analyzing the store's long-term feasibility, it added.

Ikea is currently building a new shopping mall in Changning district, close to Shanghai Hongqiao International Airport. Construction will continue as planned, the firm added.

In March, Ikea said it will close a store in Guiyang, southwestern China's Guizhou province, in April. This was the first mainland closure since the furniture chain entered the market 24 years ago.

The retailer has been making efforts to transform. In August 2019, the company said it will invest CNY10 billion (USD1.5 billion) in China within the upcoming 12 months to expand its channels, turn its services more digital, and improve customer experience.

One proof of Ikea's attempt to attract more clients is a new store concept. In July 2020, Ikea opened its first Ikea City, an urban showroom concept with integrated online services, in Shanghai.

After the Yangpu location is removed from the list, Ingka still operates 33 Ikea stores, one Ikea City, two experience centers, and six shopping malls on the mainland, according to its website.

Ikea's sales have been growing steadily. In the fiscal year of 2021, global revenue rose almost 6 percent to EUR41.9 billion (USD43.9 billion) from a year ago, according to the firm's earnings report released in October. However, the company did not disclose how much of that came from China.

Editor: Emmi Laine, Xiao Yi