The announcement forms part of the business’ £1bn transformation plan to further invest in London over the next three years to “better meet the needs” of its customers.
Ikea said it is committed to retaining as many of the affected colleagues as possible. The business will create over 600 vacancies in London before the proposed store closure, which will primarily be offered to the impacted workers.
The proposal to close the Tottenham store follows an assessment of Ikea’s presence in London in line with changing shopping behaviours. Last year, online represented almost half of the retailers’ total sales and the demand for different services as well as convenient deliveries accelerated.
Moving forward, the retailer will open a new fulfilment centre in Dartford in December 2022, expanding its fulfilment capacity and unlocking 24-hour deliveries in London. Additionally, in Autumn 2023, Ikea will open its new store on London’s Oxford Street.
Peter Jelkeby, country retail manager and chief sustainability officer at Ikea UK and Ireland, said: “Taking care of our co-workers is our highest priority and we will lead with respect and compassion throughout the process.
“The decision to propose closing the Tottenham store has not been taken lightly but we believe it is the right thing to do for our customers and business as we strengthen our position for the future. We will do everything we can to support the co-workers affected and our hope is that as many as possible will continue their career journey with us.”
Meanwhile, the Tottenham store will remain open with normal opening hours until further notice.