Matt Gould, market manager for IKEA London City, said IKEA was not phased about Chancellor Rachel Reeves’ hike to employers National Insurance and that the company was committed to investing in its staff. The manager was talking to the Daily Express as IKEA prepares to open its first city centre store at the old Top Shop building in Oxford Circus, in London’s West End.
Gould, 27, who started his career at IKEA Warrington at 16, said: “IKEA will continue to invest in its staff. We had a record number of people applying to us. Over 3,000 applicants for 150 jobs.” The opening on London’s Oxford Street on May 1 will be followed by another city centre store in Brighton, while smaller IKEAs will open in Chester, Norwich and Harlow later this year. The newer stores have around 5,000 sq ft floor space as opposed to 30,000 sq ft on average in IKEA’s larger so-called Blue Box stores.
Gould said the expansion of its city stores meant it could reach more customers with its affordable range. Gould also said that the National Insurance hike had not impacted IKEA’s recruitment plans and that its long-term strategy remained to open more stores in the UK.
He said: “When people do come to the high street, they want to speak to co-workers. They want that human interaction. So we’ve done a lot of work, and we’ve invested more in co-workers here in Oxford Street than we have before.”
He also confirmed that all four stores would be opened by the end of the year, with Brighton due to start trading this summer.
When it comes to the other three stores, Chester, Harlow and Norwich, IKEA had “started recruitment, we’ve started to fit out. So we’ve started those processes”.
Gould also said that IKEA was looking beyond the current crop of openings and its target would be city centres.
He said: “We do need to become more accessible. Today, city centres are ultimately where we feel that we can be accessible, where it is more from a convenience point of view, where people can come to pop in and out.” He added that IKEA would look to open stores “where our customers are”.
IKEA’s latest opening follows an extensive renovation of the Grade II-listed building at 214 Oxford Street by Ingka Investments, the investment arm of Ingka Group.
Peter Jelkeby, CEO and chief sustainability officer, IKEA UK, said: “It will be an IKEA many know and love, with some new features exclusive to this iconic city centre store. Created in collaboration with real voices and with Londoners in mind, opening our doors is a landmark moment following a meticulous renovation and we are truly excited to share it.
The Mayor of London, Sadiq Khan, said: “Oxford Street is one of the most famous shopping destinations in the world and we want to give it a new lease of life. This involves attracting brilliant companies like IKEA, which will help to create new jobs and increase footfall.
Cllr Geoff Barraclough, Westminster City Council Cabinet Member for Planning and Economic Development, said: “We look forward to seeing the positive impact the store will have on the local economy and will continue to support emerging businesses and established brands to Oxford Street and across the city.”
Dee Corsi, CEO, New West End Company, said: “The much-anticipated arrival of IKEA is an important milestone in that evolution, reinforcing the street’s global reputation as an iconic retail destination.”