The owner of Ikea has snapped up Topshop’s former flagship store on Oxford Street in London for £378 million ($521 million).
The Swedish company will acquire 239,000 square meters of retail and office space in the seven-story building, which is also home to current long-term tenants Nike and Vans.
Following the collapse of Sir Philip Green’s retail empire, the purchase of the long-term lease on the building is expected to be completed in January after a conditional sale agreement was signed.
The new Ikea store is scheduled to open in autumn 2023 and will focus on home accessories. It will be the brand’s second smaller store format after the Hammersmith location opened this winter.
Watch: IKEA reports record retail sales for the full year
The move is part of Ikea’s strategy to open inner-city locations and bring the company closer to customers. Ikea also described the move as a vote of confidence in the London property market.
The store focuses on home furniture, with the entire range available for home delivery. Around 150 new jobs are expected to be created locally.
Read more: Topshop sale likely to bring Sir Philip Green’s family £50 million
Peter Jelkeby, head of Ikea’s business in the UK and Ireland, said: “While online shopping continues to grow rapidly, our physical stores (large and small) will always be an essential part of the Ikea experience – as places of inspiration and expertise, community and engagement.
“Ikea’s location in the heart of Oxford Street – one of the most innovative, dynamic and exciting retail locations in the world – is a direct response to these societal changes and an exciting step forward on our journey towards greater accessibility.”
Krister Mattsson, managing director of Ingka Investments, part of Ikea’s parent company, said: “We are delighted to have signed this deal for a property on one of Europe’s busiest shopping streets. It represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers.”
“This property offers great potential for retail space and we firmly believe in the long-term value of the London property market.”
The Arcadia Group, which owned Topshop, filed for bankruptcy in November last year and several of the company’s other brands were also auctioned, including Evans, Burton and Dorothy Perkins.
After rescue talks failed at the last minute, the company officially filed for insolvency, a form of bankruptcy, ending Sir Philip Green’s reign as king of the high street.
Watch: ASOS acquires Topshop and other brands from Arcadia
