Ikea seals deal to take over landmark Topshop store

Ingka Investments, the investment arm of Ikea parent company Ingka Group, has signed a conditional purchase agreement for the space.

The former Topshop store measures a total of 239,000sq ft over seven floors, three of which will house a new Ikea smaller format store, while current occupants Nike and Vans will continue to lease their spaces.

The store will add to the new format store in Hammersmith in London which is in the pipeline.

Ikea has increasingly sought to diversify its property portfolio away from its traditional big box spaces, as part of a long-term strategy to be more accessible to the urban customer.

Ikea UK country manager Peter Jelkeby told Retail Week: ”The store is what we call an extra small store, similar to the one in Hammersmith (pictured). 

“It will be a mix of takeaway products geared around home furnishings, accessories and decorations, but we will also have the inspirational room sets, planning services and home delivery. There won’t be any brown boxes carried out, unless they’re very small. We will also have the food offer there.”

Unlike a traditional Ikea store, customers will not “snake” around the inspiration section before picking up items to take away - the store will be divided in a “more open” way.

Jelkeby added: “If you ask us why there, we want to be more accessible. We’re bringing a different offer to Oxford Street and I think its a great location for us. Its a very busy street and we believe we can penetrate the market more.”

Jelkeby also said the retailer would be open to “using the learnings from Hammersmith and Oxford Street” elsewhere. 

Managing director of joint administrators of 214 Oxford Street interpath Advisory Ed Boyle said: “We are delighted to have exchanged contracts on this iconic property, which sits at the cornerstone of London’s principal retail district. 

”As shoppers, workers and tourists return to central London following the pandemic, Ikea’s presence in Oxford Circus will help further boost footfall and provide a real fillip for the city’s retail sector.”