Ikea retail boss Stefan Vanoverbeke has defended the retailer’s new Oxford Street store, stating its “not just a marketing investment”.

The Swedish furniture giant, known for its big box suburban stores, unveiled its long-awaited small format concept along London’s busiest shopping street at the end of last month.

The 5,800sqm store at 214 Oxford Street, which was formerly Topshop’s London flagship, spans three floors and includes a showroom of inspiration roomsets, a market hall and a 130-seater Swedish Deli.

Vanoverbeke, who is the retail markets manager for the furniture giant’s parent company Ingka Group, admitted “this is a store which has brand impact that goes beyond London and the UK”.

He shares the retailer is also in the process of setting up a similar store on Fifth Avenue in New York City.

Vanoverbeke said that despite the high profile locations, the business wants its retail spaces to be profitable adding: “It’s not just the marketing investment, it is fantastic full Ikea experience.”

Ingka has ploughed millions into the Oxford Street retail space after acquiring the Grade II listed building for £378m in 2021. The business has spent the last three years completing extensive renovation works on the seven-storey property.

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