(Yicai) Aug. 30 -- Ikea said the Swedish furniture giant plans to invest CNY6.3 billion (USD864 million) in the Chinese market over the next three years to enhance and integrate its existing assets and carry out building work.

Ikea also intends to cut the prices of more than 300 product categories, mainly home storage and popular consumer items, in the fiscal year 2024, Ikea China said at a fiscal year launch event yesterday. The retailer will also offer free delivery and payment by installment, it added.

Ikea China said it has gradually delivered on its commitment to invest CNY10 billion (USD1.4 billion) over the past three years and announced a plan to invest a further CNY5.3 billion to develop the local market.

Ikea’s business has grown rapidly in the 25 years since it entered the Chinese market, a company insider said in explanation for its ongoing investment plans. China's consumer and retail markets are steadily recovering after the government took steps to boost the consumption of home furnishing and other areas, the person added.

Ikea has been updating its offline setup in China, and has closed three stores since last year. On July 13, the firm said it will shut its outlet in Shanghai’s Jing’an district at the end of this year. The store opened in July 2020 and was Ikea’s first city center location in the Chinese mainland.

Ikea has expanded other stores in Shanghai, with the one in Beicai town having recently set up new prototype rooms covering over 6,700 sqm. Its Shanghai Ikea Livat complex in the Hongqiao Linkong Economic Zone will also open for business next year.

Editor: Martin Kadiev