Ikea is shutting down its Tottenham superstore in North London in a move that leaves 450 employees at risk.
The furniture giant said the decision came as customers move more towards online shopping. Last year, online represented almost half of the retailer’s total sales, leaving Ikea “to assess the long-term viability of the site”.
Ikea has not announced when the Tottenham store will close but it has already entered a period of collective consultation with the 450 co-workers affected by this proposal. It said it is “committed to retaining as many as possible” as it will create 600 vacancies in London “before the proposed store closure”.
Ikea’s UK head, Peter Jelkeby, 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.”
The closure will leave Ikea with just four full scale stores in the London area: Croydon, Greenwich, Lakeside and Wembley.
It has a smaller format outlet in Hammersmith that opened last month.
The retailer is set to open a new fulfilment centre in Dartford in December 2022, expanding its fulfilment capacity and unlocking 24-hour deliveries in London. In Autumn 2023, it will open a store on London’s Oxford Street.
The Tottenham store will remain open with normal opening hours until further notice.
Watch: Will UK house prices ever fall?