Unpacking The Decision To Downsize: The Future Of IKEA?

Reports last year about IKEA’s plans to transform Topshop’s former flagship store at Oxford Circus, London were met with positivity seen as a boost for the evolution of the high street. Yet today, IKEA has announced that it will close one of its largest UK stores in Edmonton, North London in response to ‘changing shopping behaviours’.

Peter Jelkeby, Country Retail Manager and Chief Sustainability Officer, IKEA UK & Ireland says: ‘The decision to propose closing the Tottenham store has not been taken lightly but we believe it is the right thing to do for our customers and business as we strengthen our position for the future.’

IKEA Tottenham which opened 17 years ago has announced it has launched a period of collective consultations with over 450 store colleagues. The site‘s opening event proved disastrous when thousands of shoppers descended on the store in search of cut-price bargains but instead faced crushing queues and fights breaking out amongst customers.

The Swedish interior retailer will continue to deliver on its £1 billion transformation plan for the London area including the premium Oxford Street store set to open in Fall 2023. The inner-city format stores are smaller than the brand’s traditional warehouse size outlets with fewer furniture products and a focus on accessories and room planning with IKEA product support.

The full IKEA range will be available to order via its home delivery service.The brand launched a smaller format store in West London earlier his year which sits at about a quarter of the size of its warehouse style stores.

The more central location in Hammersmith has been selected to appeal to consumers that live in more urban areas, and want more convenient and accessible venues. Additionally IKEA has a new fulfilment centre planned for Dartford, Kent for late 2022 which will enable more flexibility in its delivery service and will open locker locations for customers to collect at their convenience.

Of the 450 Tottenham store workers Peter Jelkeby, says “Taking care of our co-workers is our highest priority and we will lead with respect and compassion throughout the process.”