Ikea to close north London store putting 450 jobs at risk Business

Ikea plans to close a store in Tottenham, north London, putting 450 jobs at risk, as part of its push to open more stores in city centres.

The decision comes just a month after the Swedish giant opened its first shopping center in Hammersmith, west London.

Over the years, the kit furniture retailer has focused on smaller downtown locations rather than huge sites on the outskirts of town as shopping habits change.

Peter Jelkeby, Ikea UK country manager, said: “The decision to propose the closure of the Tottenham store has not been taken lightly, but we believe it is the right one. something to do as we strengthen our position for the future.”

The Tottenham store will continue to operate as normal until further notice.

Last year, online sales accounted for nearly half of the retailer’s total sales. At the same time, demand for services and home deliveries accelerated.

Ikea said it was aiming to retain as many employees as possible by creating 600 jobs in London as part of plans to invest £1billion in the capital over the next three years.

Tottenham’s closure comes after its Coventry city center store closed in 2020, affecting around 350 jobs. Ikea blamed high operating costs for the decision.

Two years earlier, it had ended an “order and collect” point in Birmingham, where nearly 40 people were employed.

Ikea’s design and planning store on Tottenham Court Road in central London also closed in July 2021, but will be replaced by a new store on Oxford Street next year.

Its five other stores in the capital – in Croydon, Greenwich, Hammersmith, Lakeside and Wembley – will not be affected by the change in strategy.

Ikea will open a new distribution center in Dartford, Kent, in December to ensure round-the-clock deliveries in the capital.