Swedish origin brand IKEA has agreed a deal to buy former the Topshop Oxford Street flagship store in a £378 million deal. The world’s largest furniture giant has made this deal with the administrators of bankrupt owner Arcadia Group, as part of its push to open inner-city outlets.
Oxford Street has seen a sharp drop in footfall these past few years as major retail brands like Debenhams, John Lewis and Gap closed their flagship stores leaving huge empty retail spots empty on London flagship retail shopping street. The Covid-19 pandemic restrictions significantly affected more retailers leading to more retail closures leaving developers and politicians worried on how to get the shoppers back to the street.
Head of the investment arm of Ingka Group which owns most IKEA stores, Krister Mattsson told Reuters that three floors of the building would be turned into an IKEA store due to open in the summer or autumn of 2023.
“A conditional purchase agreement has been signed to acquire a property at 214 Oxford Street (Oxford Circus) in London,” Ingka Investments said in a statement.
“The investment supports the transformation of Ingka Group’s retail business, bringing IKEA closer to customers.”
The Oxford Street IKEA store will be the biggest inner-city format store to date, Mr Mattsson said in an interview.