Ikea is accelerating its shift towards smaller city-centre stores in Britain, as rising property taxes and changing shopping habits blunt the appeal of traditional out-of-town megastores.
Peter Jelkeby, the outgoing chief executive of Ikea UK and Ireland, said the Swedish retailer would focus future expansion on compact urban formats after strong trading at its new Oxford Street flagship and central Brighton store.
The strategy represents a clear move away from Ikea’s historic “big box” warehouse model, which dominated retail parks for decades and defined the brand’s British expansion from the late 1980s onwards.
While the group has no immediate plans to close existing large stores, Jelkeby confirmed that Ikea does not intend to open any new megastores in the UK.
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