Ikea’s Oxford Street launch delayed by leaky basement

IKEA has delayed the opening of its new flagship store on Oxford Street for a second time after discovering leaks in the building’s basement during renovation work.

The Swedish retailer said it was now planning to open the store next spring rather than this autumn. It means the project is 18 months behind schedule.

Ikea had initially planned the opening of the flagship West End store for autumn 2023 as part of plans to reduce its reliance on out-of-town shops.

The latest delay comes after new issues emerged during the renovation of the former Topshop store, which has been empty since 2021 when the retailer’s owner Arcadia collapsed into administration.

The London site is now owned by the investment arm of Ingka, the largest franchisee of Ikea. Ingka said it had discovered “unforeseen additional work” needed to take place to deal with water seeping into the basement floors. Peter van der Poel, Ingka Investments’s managing director, said: “We’re now taking vital steps to mitigate long-term flood risk, and to protect and futureproof this historic building for many years to come.”

The pushback to the store opening will come as a blow to Oxford Street, which has been battling to stage a revival. Westminster Council has been attempting to rid the West End shopping street of an influx of US candy stores and luggage shops. It is planning a £90m regeneration of the street.

There have been signs that the area’s fortunes are starting to change, as more retailers begin leasing space on Oxford Street again. Property deals are forecast to hit a new high this year, after 2023 saw more deals taking place than in the three previous years combined.

However, question marks still hang over the future of Marks & Spencer’s flagship Marble Arch store which it wants to bulldoze and rebuild.