Ikea to move into Topshop’s former Oxford Street flagship in 2023

The empty Topshop Oxford Circus store is being redeveloped by Ikea
The empty Topshop Oxford Circus store is being redeveloped by Ikea

Ikea is set to move into the former Topshop flagship store in London’s Oxford Street this autumn after paying £378 million.

The furniture chain’s owner Ingka Investments has bought Topshop’s former flagship store on Oxford Street, creating a new central London home for Ikea.

The deal to buy the long leasehold on the building, which includes the now vacant 100,000sq ft Topshop outlet as well as a Nike Town store and a shop used by footwear brand Vans, will complete in January after a conditional purchase contract was signed.

READ MORE: Ikea plans to take over Topshop’s London flagship: A Swede deal?

It completes the sell-off of the assets of Sir Philip Green’s Arcadia Group empire, which collapsed into administration in November last year.

Ikea said it planned to open a store in the building in autumn 2023, focusing on home-furnishing accessories.

The full range of furniture will be available to buy for home delivery.

Funds from the deal will pay off a £312 million mortgage taken out on the building in 2019 with the hedge fund Apollo Global Management.

Around £40 million more is expected to go to Arcadia’s pension fund which had a deficit of about £300 million at the time of administration.

“Even though online shopping continues to accelerate at a rapid pace, our physical stores (large and small), will always be an essential part of the Ikea experience – as places for inspiration and expertise, community and engagement,” head of Ikea UK and Ireland, Peter Jelkeby said.

“Bringing Ikea to the heart of Oxford Street – one of the most innovative, dynamic and exciting retail destinations in the world – is a direct response to these societal shifts and an exciting step forward in our journey to becoming a more accessible.”

Ingka Investments managing director, Krister Mattsson said the acquisition of the store was an “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 real estate market in London,” he said.

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