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IKEA buys former Topshop flagship retailer in central London for $520 mln

STOCKHOLM, Oct 26 (Reuters) – IKEA, the world’s largest furnishings model, has agreed to purchase the long-lasting former flagship retailer of British trend chain Topshop in central London from the directors of bankrupt proprietor Arcadia Group, a part of its push to open inner-city retailers.

Krister Mattsson, head of the funding arm of Ingka Group which owns most IKEA shops, informed Reuters that three flooring of the seven-storey constructing on Oxford Street, which it’s shopping for for £378 million ($520 million), can be become an IKEA retailer as a result of open in the summertime or autumn of 2023.

“This is a very good fit into our strategy. This is a meeting place – it’s one of the best spots for visitation in Europe, with amazing numbers of people passing by every week,” Mattsson, managing director of Ingka Investment, mentioned in an interview.

IKEA has tweaked its technique lately in direction of including inner-city retailer codecs apart from its big out-of-town warehouse shops to mirror altering procuring behaviour.

It opened its first inner-city full-range retailer in Paris in 2019. Its first centrally positioned retailer in London is because of open within the coming months, within the borough of Hammersmith.

“The investment supports the transformation of Ingka Group’s retail business, bringing IKEA closer to customers,” Ingka Investments mentioned in an announcement.

Mattsson mentioned the Oxford Street retailer can be IKEA’s largest inner-city format retailer up to now.

Ingka Investments and IKEA’s procuring malls arm Ingka Centres are scouting for appropriate centrally positioned properties throughout main cities in Europe and North America. Milano, Rome and Berlin are excessive on the agenda for Ingka Investments, Mattsson mentioned.

He mentioned there had been a number of bidders for the Oxford Street property. Overall within the phase the place IKEA is seeking to purchase, curiosity from each institutional investor and different retailers was rising alongside customers’ return to shops, he mentioned.

($1 = 0.7272 kilos)

Reporting by Anna Ringstrom; Editing by Jan Harvey

Crowds line the street waiting for model Kate Moss to launch her 15th Kate Moss Topshop collection at Topshop's flagship store on Oxford Street in London April 29, 2014.  REUTERS/Luke MacGregor

The company's logo is seen outside of an IKEA Group store in Saint-Herblain near Nantes, France, March 22, 2021. REUTERS/Stephane Mahe

People walk past an entrance to the Topshop store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay