Now even Ikea is being hit by crisis on the high street

Furniture giant shuts UK store for first time in its history

IKeA has confirmed plans to shut one of its large UK stores for the first time in its 33-year history.

The Swedish furniture giant said it will close the doors of its £35million coventry city centre branch, which opened in 2007, with 352 workers expected to lose their jobs.

The retailer said changing consumer habits meant the store was making consistent losses.

The number of customers visiting the store was well down as they increasingly head to retail parks or go online to shop, the company added.

Ikea is looking at rolling out more city centre locations – but far smaller than the coventry site. In London it operates showroom- style stores selling big ticket items such as kitchens, and next year it is opening a store selling accessories in Hammersmith, west London.

The retailer first entered the UK in 1987, opening a site in Warrington, cheshire. Last year it made £2.1billion of revenue from its 22 stores. Ikea said it tried a number of initiatives to keep the coventry store open but ‘these have not resolved the fundamental challenges connected to the location and the format of the store’. An attempt by Ikea to downsize or redevelop the site was ‘not a realistic option’.

The firm will start a consultation with the 352 workers affected and said it ‘has the ambition to retain as many people as possible within Ikea’.

Peter Jelkeby, country retail manager and chief sustainability officer for Ikea UK and Ireland, said: ‘Although this isn’t an easy decision, this is the right decision for the long-term success of Ikea in the UK.’

Dave Gill, of the Usdaw union, said: ‘This is devastating news for Ikea staff. Our priorities are to seek redeployment opportunities, minimise compulsory redundancies and secure the best deal we can for our members.’

Ikea has managed to hold up well in the UK in recent years as the high street has suffered. With the majority of its sites in retail parks, it has had smaller falls in shopper numbers compared with high streets and shopping centres.