Swedish homeware giant, Ikea, has taken on Topshops’ former flagship store on Oxford Street, London, paying £378 million for the iconic retail site in a transaction due to be completed in January 2022.
The new London store is scheduled to open in autumn of 2023 and follows the already planned launch of a store in Hammersmith later this year. The 214 Oxford Street building will be in Ikea’s smaller store format, stocking a range of furniture and accessories, plus a planning studio, over around a third of the 22,300 square metres of space across seven floors.
The presence of Ikea close to Oxford Circus should provide a welcome footfall boost to the London retail scene, which has suffered from a swathe of shop closures and business administrations during the pandemic.
The managing director of Ikea’s property-buying arm, Ingka Investments, said: “We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers. This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London.”
Peter Jelkeby, country retail manager and chief sustainability officer at Ikea UK & Ireland, said: “Even though online shopping continues to accelerate at a rapid pace, our physical stores (large and small), will always be an essential part of the Ikea experience – as places for inspiration and expertise, community and engagement.
“Bringing Ikea to the heart of Oxford Street – one of the most innovative, dynamic and exciting retail destinations in the world – is a direct response to these societal shifts and an exciting step forward in our journey to becoming a more accessible Ikea.”
Ikea has also opened up shops in Madrid, Moscow, New York, Paris and Tokyo over the past couple of years.
