Ikea buys 22,000 sq m property on Oxford Street

Ikea has acquired the former Topshop store on London’s well-known shopping street, Oxford Street. The plan is to open a new city store at the premises in the autumn of 2023.

Smaller city stores

Ingka Investments, the owner of the Swedish furniture giant, is putting 378 million pounds (450 million euros) on the table for the building with a total surface area of 22,000 sqm. In addition to the vacant Topshop store, the building also houses Nike and Vans stores. The deal marks the end of the sale of the assets of the Arcadia empire, after the controversial British businessman Philip Green’s company collapsed at the end of November.

Ikea said it plans to open a store in the building in the autumn of 2023, which will centre around home furnishing accessories. Customers will also be able to buy the full range of furniture and have it delivered to their door.

The investment is in line with the transformation of the Ingka Group’s retail activities. In response to increasing urbanisation and changed shopping behaviour, Ikea is opening new (smaller) outlets in urban areas. “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”, said Peter Jelkeby, head of Ikea UK and Ireland.