IKEA’s shopping center business is investing170 million pounds ($222 million) to purchase and upgrade a London mall in its first venture into Britain, betting it may win over a country increasingly doing its shopping on-line.
Ingka Centers, a unit of the world’s greatest furniture retailer, stated Thursday it would put a brand new format IKEA store on the heart of the 27,000-square meter Kings Mall in London’s Hammersmith district.
It purchased the mall from Schroder UK Real Estate Fund.
The step comes as Britain’s store groups battle, with many retailers closing as shoppers, decide to spend more of their money online.
“Modern physical retail must be built around local community requirements, a complementary mix of makes use of, digitalization and sustainability. We have to remain relevant to our shoppers and understand how people opt to spend their time,” he said.
The deal underscores Ingka Centers’ debut in Britain. It is also its first purchase of an existing mall and shall be its first anchored by a new-format smaller IKEA store.
The firm’s existing 44 shopping centers in 14 markets are all secured by a traditional, warehouse-like IKEA store, and it has had them built itself.
To meet the rising challenge from online purchasing, IKEA is about to roll out smaller, but more accessible, inner-metropolis shops with more digital and other companies.
Urban combined-use facilities for socializing and shopping such because the renovated Kings Mall will support that approach, Ingka Centers stated.