IKEA's store in Tottenham, London, is set to close down
IKEA UK says 450 workers will be impacted by the planned closure of their Tottenham store in London.
The Swedish-founded company said they are committed to retaining as many staff as possible.
The retailer said the decision comes as part of its overhaul of London stores, including the opening of a smaller format site in Hammersmith and plans to open a store in the former Topshop site in Oxford Circus next year.
In the UK, there are 27 IKEA stores, but expansion has now shifted from its big-box format to smaller store formats, such as pop ups.
The flatpack furniture giant hopes to create 600 other jobs across the capital this year with its £1billion investment strategy.
An IKEA spokesperson said: “Last year, online represented almost half of the retailers’ total sales and the demand for different services as well as convenient deliveries accelerated.
“This, combined with the redevelopment of the area where the store is located, prompted the retailer to assess the long-term viability of the site.”
IKEA’s Tottenham store first opened its doors in 2005.
Bosses will launch a period of collective consultation with the 450 co-workers affected by this proposal.
Peter Jelkeby, IKEA’s UK and Ireland boss, said: “Taking care of our co-workers is our highest priority and we will lead with respect and compassion throughout the process.
“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.
“We will do everything we can to support the co-workers affected and our hope is that as many as possible will continue their career journey with us.”
It was not immediately clear when the Tottenham store will shut permanently.
IKEA, which was founded in 1943, employed 225,000 workers as of 2021. This is an increase of over 70,000 staff members compared to 2013.
Along with ready-to-assemble furniture, they sell home appliances and accessories, as well as hot food such as their infamous Swedish meatballs.
In 2021, IKEA was the eighth most valuable retailer in the world, making it the most valuable furniture retail brand, valued at over £14billion.
Earlier this month, they were the latest company to halt operations in Russia as it temporarily closed all stores and factories across the country in a move impacting 15,000 workers.
It shut 17 outlets across Russia and paused all export and imports going in and out of the country and Belarus.
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2022-03-30 09:38:00Z
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