Recent developments in the home furnishing sector have sent shockwaves through the market. A Red Star Macalline shopping mall property in Hefei's government district has been listed on JD.com's judicial auction platform with a starting price of 1.004 billion yuan, a 30% discount from its appraised value of 1.434 billion yuan. Meanwhile, the multi-story assets of the long-established Gaoli International Home Port in Yancheng have gone through multiple auction rounds, with the third attempt still ending in a failed sale. International retail giant IKEA has also commissioned Jones Lang LaSalle to sell eight closed mall properties in cities including Shanghai, Guangzhou, and Tianjin, covering nearly 500,000 square meters of floor space.
Red Star Macalline in Hefei: 160,000 sqm Property Sold at 30% Discount, Starting Price 1.004 Billion Yuan
Recently, a listing appeared on JD.com's judicial auction platform for the Red Star Macalline property at 909 South Second Ring Road in Hefei's government district, with the auction scheduled to start at 10:00 AM on August 15, 2026. The auction targets include the entire first through fifth floors of retail space, two underground levels of parking, an electrical equipment room, and all associated ground-level facilities, totaling over 160,000 square meters of building area. The property is being sold as a single package and cannot be split.
The mall officially opened in 2012 and operated using Red Star Macalline's seventh-generation model. At its peak, it formed a "north-south dual core" layout in Hefei's home furnishing market alongside Xindi Red Star Macalline. According to the auction notice, the property's appraised value is 1.434 billion yuan, with a starting price of 1.004 billion yuan—a 30% discount. Bidders must submit a deposit of 200 million yuan, with minimum bid increments of 5 million yuan. As of July 27, the JD.com platform showed zero registered bidders and 2,146 viewers.
Notably, this auction involves the property's ownership rights, not the Red Star Macalline brand's operating rights. The property is owned by Anhui Tianhui Real Estate, while Red Star Macalline Brand Management Company leases and operates the mall under a partnership agreement. The auction will not affect the mall's normal operations, but a change in property ownership could lead to issues such as lease contract renewals in the future.
Yancheng Gaoli International Home Port: Former Landmark Faces Multiple Failed Auctions
Recent data from Alibaba's judicial auction platform shows that properties owned by Gaoli Holding Group Co., Ltd.'s Yancheng branch, located on the second, third, and fourth floors of Building A at 248 Jiefang South Road in Yancheng, are being auctioned. These properties house the Gaoli International Home Port. Records indicate the total building area is 45,162.70 square meters, making it Yancheng's largest one-stop shopping mall for furniture, building materials, and lighting fixtures. The mortgage debt is a first-priority lien, securing a debt amount of 260 million yuan. The total starting price for the three properties is approximately 228 million yuan.
According to the latest information, the property underwent its third auction from July 22 to 23, 2026, with multiple price reductions, yet it still ended in a failed sale. Gaoli Holding Group's Yancheng branch has been listed as an enforcement target and subject to consumption restrictions, with a total enforcement amount of 147.7146 million yuan. Earlier, on March 16, 2026, Gaoli International Home Port issued a notice citing contract terms, macroeconomic downturns, declining business performance, and a vacancy rate of only 40% in Building B, to terminate its 2025-2028 shop lease agency contract on March 17.
IKEA China: Selling Eight Properties, Denies Financial Pressure
Recently, real estate services firm Jones Lang LaSalle announced that IKEA has commissioned it to sell eight properties across cities including Shanghai, Guangzhou, and Tianjin. Seven of these correspond to large-scale stores that were collectively closed on February 2, 2026, including locations in Shanghai Baoshan, Guangzhou Panyu, Tianjin Zhongbei, Nantong, Xuzhou, Ningbo, and Harbin. One additional property in Guiyang ceased operations as early as 2022.
In response to market speculation about whether the property sales are due to financial pressure, IKEA China stated that the disposal of closed mall properties is a commercial decision for dynamic resource allocation, not driven by financial strain. IKEA emphasized that China remains a key strategic market, with 36 customer touchpoints still operating across the mainland. The company is shifting from a model reliant on large-scale stores to a more flexible, omni-channel approach. Over the next two years, it plans to open more than 10 smaller stores in key markets like Beijing and Shenzhen, each around 3,000 square meters, designed to reach consumers through community-based, convenient access.
Survival Strategies After the Shakeout
These three stories, while seemingly unrelated, collectively paint a picture of the profound transformation underway in the home furnishing retail industry. After the shakeout, what business models can survive? The answer may be clear: the commercial projects that will truly endure are not those that simply rent out space, but those with clear positioning, stable customer traffic, sustained leasing capabilities, and operational models that meet new consumer demands.
Examples include Red Star Macalline's efforts to rejuvenate its malls for younger shoppers, adding immersive experiences like trendy toys and pet furniture. Easyhome is creating themed sections for senior-friendly and human-pet cohabitation spaces. IKEA is using smaller stores to get closer to consumers' daily activities, shortening shopping distances and matching high-frequency needs for small-item replacements and partial home renovations.
For the home furnishing industry, 2026 may prove to be a watershed moment. Heavy-asset malls that cannot adapt to new consumption logic will continue to be phased out by the market. In contrast, companies that lead the way in lightweight, scenario-based, and digital transformations are poised to gain a competitive edge in the upcoming round of industry evolution.
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