The owner of IKEA has purchased Topshop’s former leading store on Oxford Street, London. This store was once the highlight in Sir Philip Green’s retail kingdom. IKEA purchased the Topshop store for a whopping GBP 378 million (USD 519.61 million) and is now dubbed to emerge as the new central London home for the Swedish furnishing brand of IKEA.
IKEA buys flagship Topshop store on Oxford Street
The IKEA agreement to purchase the long lease on the building, which is inclusive of a bare 100,000 square feet Topshop store along with a shop used by premium footwear brand Vans, and a Nike Town store, is set to be accomplished in January 2022.
The building acquisition finishes the sell-off of Green’s Arcadia Group empire’s assets.
IKEA is brainstorming to launch a store in the building by autumn 2023, targeting home-furniture accessories like curtains and lamps. There will also be a cafeteria and a plethora of room sets on display, with retail items from the retailer’s comprehensive range of furniture available to purchase for home deliveries.
Finances from the contract are estimated to pay off a GBP 312 million (USD 428.88 million) mortgage accumulated on the building in 2019 with the Apollo Global Management hedge fund, whilst around GBP 40 million (USD 54.98 million) more is estimated to go into the Arcadia pension fund, which possessed a deficit of around GBP 300 million (USD 412.39 million) during the group’s collapse.
Head of IKEA’s Ireland and UK business, Peter Jelkeby, stated that IKEA was seeking more stores in major city centres as it wanted to be more available to a wider range of people and network its online operations with physical stores intimately.
Despite the vast expansion of online shopping orders, IKEA’s physical outlets (both small and big) will continue to remain a significant part of the firm’s expansion, stated Jelkeby.
Fetching the multinational retailer to the bosom of Oxford Street, which is one of the most versatile and innovative retail spots in the world, is a direct retaliation to social shifts, the Head of IKEA’s Ireland and UK business stated.
Jelkeby supposed that the market for homewares is constantly enabling consumers to upgrade their living spaces to handle new demands, including the world’s necessity for work from home environments.
The new tenant in one of the most eminent destinations on Oxford Street arrives after several shops remain shut in the premium shopping spot owing to the aftermaths of the pandemic.
Retail outlets of GAP, Next, River Island, and Debenhams, have closed their shops on Oxford Street. However, prominent brands like John Lewis and Marks & Spencer have applied for permission to transform some of their stores into office spaces.
The Managing Director of Ingka Investments (part of IKEA), Krister Mattsson, stated that the company was a staunch believer in the long-term worth of London’s real estate market.
Mattsson stated that the investment showcased the firm’s spellbound commitment to the UK market, where the multinational conglomerate has recently invested in what3words and Winnow, a firm that works towards the reduction of commercial food surplus.
About IKEA
IKEA is a brand that holds various conglomerates under one single banner. Conceived in 1943, the retailer is now spread all over the globe and demonstrates its passion for home furnishing. Headquartered in the Netherlands, the multinational conglomerate designs and retails ready-to-assemble furniture, home accessories, and kitchen appliances. The firm aspires to share its vision of providing a better life for the citizens of the globe. The firm’s business idea rests within its commitment to offer a broad range of functional and well-designed furnishing products at prices that are affordable to the masses. The firm currently boasts around 462 Ikea stores worldwide.