Ikea is set to close its landmark London store in Tottenham as part of a £1bn transformation plan driven by changing customer habits.
The Swedish retail giant said it would do its best to provide the 450 affected staff who work at the Tottenham store with new jobs in London.
As part of the company’s new strategy in the capital, Ikea opened a new, smaller format store in Hammersmith, West London, in February this year. In a statement, the retailer said it would open a new fulfilment centre in Dartford in December 2022, expanding its fulfilment capacity and unlocking 24-hour deliveries in London.
Then, in Autumn 2023, IKEA will open a store on London’s Oxford Street, on the site of Topshop’s former flagship location.
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The shake-up comes as more than half of Ikea’s customers moved online last year, while demand for different services as well as convenient deliveries accelerated.
This, combined with the redevelopment of the area where the Tottenham store is located, prompted the retailer to assess the long-term viability of the site, it said in its statement.
Ikea will now enter a period of negotiation with the 450 workers affected by the move, saying it is “committed to retaining as many as possible.”
The company promised to create over 600 vacancies in London before the proposed store closure in North London, which as a priority will be offered to the affected staff members.
“Taking care of our co-workers is our highest priority and we will lead with respect and compassion throughout the process,” said Peter Jelkeby, country retail manager and chief sustainability officer, Ikea UK & Ireland.
“The decision to propose closing the Tottenham store has not been taken lightly but we believe it is the right thing to do for our customers and business as we strengthen our position for the future,” he added. “We will do everything we can to support the co-workers affected and our hope is that as many as possible will continue their career journey with us.”
Ikea said that its five other stores in London – in Croydon, Greenwich, Hammersmith, Lakeside and Wembley – would “continue to play an important role in the retailer’s business model,” and would all see further investments too as part of the plan.
