The property at 214 Oxford Street (Oxford Circus) comprises a total of 22,200 sqm over seven floors, with retail space on six floors. It will host IKEA UK’s second smaller store format and will follow the opening of IKEA Hammersmith later this winter.
Since 2019, Ingka Group has opened stores and shops in major cities such as Tokyo, Madrid, Moscow, Paris, and New York, as well as planning studios in Vienna, Barcelona, Berlin, and Prague, always closely integrated with a digital customer experience.
Krister Mattsson, Managing Director of Ingka Investments, states: “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. Securing ownership of properties in prime locations instead of leasing will preserve value on a long-term basis.”
Peter Jelkeby, Country Retail Manager and Chief Sustainability Officer, IKEA UK & Ireland, says: “Today we are seeing societal changes that have evolved customer behaviors and the retail industry as a whole. Big global movements in technology, demographics, urbanization and environmental awareness have caused significant waves of change in the way we live and shop. Even though online shopping continues to accelerate at a rapid pace, our physical stores (large and small!), will always be an essential part. Bringing IKEA to the heart of Oxford Street is a direct response to these societal shifts and an exciting step forward.”
The new store is planned to open in autumn 2023 and will have a focus on home-furnishing accessories, with the full range available to buy for home delivery. A conditional purchase contract for the property is now signed and the closing of the acquisition is expected in January.