Ikea buys former Topshop flagship store on Oxford Street

Move comes after clothing company was bought by Asos earlier this year

Ikea is set to pay more than £370m for the West End store (AFP via Getty)

Ikea is set to buy Topshop’s former flagship store on Oxford Street in central London.

The deal, which would land the Swedish furniture giant a store on one of Europe’s busiest shopping streets, is worth around £378m.

Topshop was bought by Asos earlier this year, following the collapse of Sir Philip Green’s retail empire.

The online retailer decided not to take on Topshop’s 70 physical stores, including its flagship store in central London.

The move by Ikea is a much-needed vote of confidence for central London, which has been hit by a drop in tourists due to the Covid pandemic.

It plans to open Ikea Oxford Street in autumn 2023, following the planned launch of its Hammersmith store later this winter.

The 214 Oxford Street property will now have Ikea’s smaller format store with a selection of its accessories, furniture and a planning studio across roughly a third of the building’s 22,200sq m over seven floors.

“We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets,” Krister Mattsson, managing director of Ingka Investments, Ikea’s property-buying arm, said.

“It represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers.”

Peter Jelkeby, country retail manager at Ikea UK & Ireland, said the Swedish retailer’s physical stores “will always be an essential part of the Ikea experience”, even as online shopping continues to grow.

“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 Ikea,” he added.

Ikea has expanded in major cities over the past few years, opening stores in Tokyo, Madrid, Moscow, Paris and New York.

The furniture giant currently has 22 stores in the UK, including five in Greater London.

The sale for the West End store is expected to go through in January, according to administrators at Interpath Advisory.

Additional reporting by Press Association