IKEA has announced buying Topshop’s former flagship store on Oxford Street for $523 million following the collapse of Sir Philip Green's retail empire.
The Swedish giant said of the acquisition that it plans to open its Oxford Street store in Fall 2023, focusing on homewares and accessories, while the retailer’s full range of furniture will also be available for home delivery. As a result, several floors of the huge Oxford Street site will be turned into a furniture store as part of a strategy to open inner-city outlets.
The 239,000 sq ft retail and office space, on seven floors, also houses NikeTown and Vans, who stay as tenants.
This move emphasizes on IKEA's stand on bricks and mortar since the furniture mogul considers it to be main key to its growth despite the continuous growth of its online sales.
Although IKEA is famous for its huge out-of-town warehouses, it has been trialling inner-city formats across Europe for more than two years. Its first inner-city outlet in Paris opened its doors in 2019. It also has city centre sites in New York, Toyko, and Madrid, with outlets planned for Vienna, Barcelona, Berlin and Prague. IKEA currently has 22 UK outlets.
A conditional purchase contract for the property is now signed, with the final details expected to be completed in January.
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