Ikea has scrapped plans to build its second largest UK store in north west England over fears of “rising costs” on the high street.
The retailer had already secured planning permission for a new store in Cuerden, near Preston, and was due to complete construction in 2020, creating 350 jobs.
However, Ikea has now cancelled plans due “to increased development costs and delays outside of Ikea’s control which no longer make this location viable”.
Its UK and Ireland property manager Richard Rands added: “We will continue to look for new sites and opportunities in this region as part of our commitment to expansion in the UK.”
The local council’s leader Geoff Driver said: “This is extremely disappointing and we will hold discussions over the next few weeks with Ikea, the main anchor occupier for the retail element of strategic development site at Cuerden.
“We appreciate that there is a current state of uncertainty in the UK retail market generally and we know there have been rising costs.
“However, this still remains a great investment opportunity.”