IKEA Opens New London City Centre Store
Swedish furniture giant IKEA on Thursday opened a new store in the heart of London's shopping district, with a flurry of balloons, flags -- and giant meatballs.
The Oxford Street outlet has been seven years in the making and is part of the retailer's strategy of bringing the global brand closer to city centres.
Tolga Oncu, retail manager at Ingka Group, the holding company which controls most of IKEA's stores, said they were encouraged by the "urban formats".
Others already exist in places such as Paris, Stockholm, Vienna and Tokyo.
"We know the fact that when we are physically present, not only our physical retail improves but also our digital retail improves," said Oncu.
The 4,600-square-metre (nearly 50,000 square-feet) store is housed in the former Topshop building, which the company bought in 2021 for GBP378 million ($503 million).
Hundreds of people thronged the aisles on Thursday to deafening music by a DJ, with attendance boosted by unusually summery temperatures in the British capital.
Some shoppers held Swedish and UK flags as they posed for photos with a giant meatball, as others browsed the store, which it is hoped will help regenerate Oxford Street after the closure of several big-name outlets.
With total sales of 45 billion euros ($51 billion), Ikea, founded in 1943 by Ingvar Kamprad, is keeping its focus on physical stores despite the boom in online shopping.
In 2023-24, online accounted for 26 percent of the company's turnover compared to just seven percent five years ago.
The UK is IKEA's fourth-biggest market, behind Germany, the United States and France.
Oncu said Brexit -- Britain's tortuous departure from the European Union in 2020 -- "hasn't made a difference" but said the company was "closely monitoring" the trade war launched by US President Donald Trump.
"We have a global footprint where a lot of our production comes from Europe," he said.
"Then, of course, like everyone else, we are also looking for opportunities across the world."
IKEA has been looking at more local production for a number of years, particularly in the United States, notably to avoid exporting bulky items from Europe, he added.
"Depending on what the conclusions will be, we will have to look at (whether) we are still having a set-up that is the best for us to keep our prices as low as possible," he said. The company said it has been encouraged by the 'urban format' elsewhere in the world AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
2 days ago
- DW
High hopes as Germany's Merz meets US President Trump – DW – 06/04/2025
Will German Chancellor Friedrich Merz convince US President Donald Trump to be a reliable partner to Europe? Expectations are high for Merz's first visit to Washington. Friedrich Merz and Donald Trump have already exchanged private cell phone numbers and they are on a first-name basis, but aside from a brief encounter in New York years ago, this Thursday will be the first time that the two leaders meet. The new German Chancellor Friedrich Merz of the conservative Christian Democratic Union (CDU) is on his inaugural visit to Washington. Merz, like former chancellor Angela Merkel, the British Queen Elizabeth and French President Charles de Gaulle before him, has been invited to stay at the Blair House, directly adjacent to the White House. It was only a few weeks ago that Merz expressed strong disapproval of events in the Oval Office in March, when the US president publicly ridiculed Ukrainian President Volodymyr Zelenskyy and blamed him for Russia's war against his country. Merz also took issue with Vice President JD Vance and other Trump associates for expressing support for Germany's far-right Alternative for Germany party (AfD). How Merz aims to regain Germany's standing on foreign issues To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Committed to trans Atlantic cooperation Recently, the German chancellor told public broadcaster WDR how his first telephone conversation with Donald Trump went: "It's always important not to talk for too long, but to keep it short and also let him talk." According to Merz, every second or third word the president said was "great." "You have to adapt your approach and work with him. At the same time, we mustn't make ourselves smaller than we are," said Merz. "We are not supplicants." Carlo Masala, professor of international politics at the Bundeswehr University in Munich, also thinks Merz needs to be confident going into his meeting with Trump. Masala told public broadcaster NDR: "He needs to be assertive, but at the same time make Trump feel respected as a great statesman with a strong vision. I believe that flattery combined with European self-confidence is the best strategy, although there is no guarantee that it will ultimately be successful." The talks in Washington are likely to focus on three major issues: the war in Ukraine, the tariff disputes, and the question of Europe's contribution to its own security. On security issues, Merz can now point to some achievements. Trump has repeatedly complained about the low defense spending of some European NATO partners, including Germany, and threatened to withdraw US protection. Now Merz can say that Germany is planning a massive military build-up: Five percent of Germany's GDP will be allocated to defense in the future, with 3.5% going directly to the military and 1.5% to defense-related infrastructure. German FM: Germany to ramp up defense spending To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Tariffs and defense Germany is also seeking to assume a greater leadership role in Europe. The joint visit made to Kyiv by the heads of state of Germany, France, Great Britain and Poland to show their support, which was initiated by Merz, demonstrated Europe's willingness to meet the American demand that it takes responsibility for its own security affairs. In return, Merz and other European leaders hope to work with the US to increase pressure on Russian President Vladimir Putin. On the issue of tariffs, Merz has no authority to negotiate because trade policy is a EU matter. But as an export nation, Germany is getting hit hard by trade barriers. On the day Merz departed, US import tariffs on European steel and aluminum doubled to 50%. The chancellor is likely to urge both sides to avoid an escalating trade conflict in which everyone loses. Friedrich Merz is very much a trans Atlanticist. He is likely to try to convince Donald Trump that it is also in his own interest for the US to remain committed to Europe. But political scientist Carlo Masala is pessimistic: "I believe that any long-term strategy that can work must assume that the United States will pull out of the negotiations between Russia and Ukraine." Europeans will have to be prepared for the US, as Ukraine's most important supporter, to withdraw, Masala said. "And to move quickly when it comes to the question of European defense capabilities and sovereignty," he said. "That is the long-term strategy." Trump threatens 50% tariffs on EU imports To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Will Trump visit his ancestral home in Germany? With the new federal government made up of the conservative CDU/CSU and the Social Democrats (SPD), a new style has also emerged in foreign policy. Former Green Party Foreign Minister Annalena Baerbock was sometimes criticized for being moralizing and patronizing. The new government now wants to focus more on common interests and finding compromises, even with difficult partners, such as the Trump administration. The conflicts between Germany and the US are numerous, and Friedrich Merz and Donald Trump are very different characters. But the German chancellor is determined to engage openly with the US president. Echoing a move by former Chancellor Angela Merkel, Friedrich Merz has invited the US president to visit the homeland of his ancestors. Trump's grandfather, Friedrich Trump, grew up in the winegrowing village of Kallstadt in the Palatinate region of Germany before emigrating to the US. It is not yet known whether Trump will accept the invitation this time. This article was originally written in German. While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
DW
2 days ago
- DW
Germany's Friedrich Merz goes to Washington – DW – 06/04/2025
Can the German chancellor convince US President Donald Trump to be a reliable partner to Europe? Expectations are high for Merz's first visit to Washington. Friedrich Merz and Donald Trump have already exchanged private cell phone numbers and they are on a first-name basis, but aside from a brief encounter in New York years ago, this Thursday will be the first time that the two leaders meet. The new German Chancellor Friedrich Merz of the conservative Christian Democratic Union (CDU) is on his inaugural visit to Washington. Merz, like former chancellor Angela Merkel, the British Queen Elizabeth and French President Charles de Gaulle before him, has been invited to stay at the Blair House, directly adjacent to the White House. It was only a few weeks ago that Merz expressed strong disapproval of events in the Oval Office in March, when the US president publicly ridiculed Ukrainian President Volodymyr Zelenskyy and blamed him for Russia's war against his country. Merz also took issue with Vice President JD Vance and other Trump associates for expressing support for Germany's far-right Alternative for Germany party (AfD). How Merz aims to regain Germany's standing on foreign issues To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Committed to trans Atlantic cooperation Recently, the German chancellor told public broadcaster WDR how his first telephone conversation with Donald Trump went: "It's always important not to talk for too long, but to keep it short and also let him talk." According to Merz, every second or third word the president said was "great." "You have to adapt your approach and work with him. At the same time, we mustn't make ourselves smaller than we are," said Merz. "We are not supplicants." Carlo Masala, professor of international politics at the Bundeswehr University in Munich, also thinks Merz needs to be confident going into his meeting with Trump. Masala told public broadcaster NDR: "He needs to be assertive, but at the same time make Trump feel respected as a great statesman with a strong vision. I believe that flattery combined with European self-confidence is the best strategy, although there is no guarantee that it will ultimately be successful." The talks in Washington are likely to focus on three major issues: the war in Ukraine, the tariff disputes, and the question of Europe's contribution to its own security. On security issues, Merz can now point to some achievements. Trump has repeatedly complained about the low defense spending of some European NATO partners, including Germany, and threatened to withdraw US protection. Now Merz can say that Germany is planning a massive military build-up: Five percent of Germany's GDP will be allocated to defense in the future, with 3.5% going directly to the military and 1.5% to defense-related infrastructure. German FM: Germany to ramp up defense spending To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Tariffs and defense Germany is also seeking to assume a greater leadership role in Europe. The joint visit made to Kyiv by the heads of state of Germany, France, Great Britain and Poland to show their support, which was initiated by Merz, demonstrated Europe's willingness to meet the American demand that it takes responsibility for its own security affairs. In return, Merz and other European leaders hope to work with the US to increase pressure on Russian President Vladimir Putin. On the issue of tariffs, Merz has no authority to negotiate because trade policy is a EU matter. But as an export nation, Germany is getting hit hard by trade barriers. On the day Merz departed, US import tariffs on European steel and aluminum doubled to 50%. The chancellor is likely to urge both sides to avoid an escalating trade conflict in which everyone loses. Friedrich Merz is very much a trans Atlanticist. He is likely to try to convince Donald Trump that it is also in his own interest for the US to remain committed to Europe. But political scientist Carlo Masala is pessimistic: "I believe that any long-term strategy that can work must assume that the United States will pull out of the negotiations between Russia and Ukraine." Europeans will have to be prepared for the US, as Ukraine's most important supporter, to withdraw, Masala said. "And to move quickly when it comes to the question of European defense capabilities and sovereignty," he said. "That is the long-term strategy." Trump threatens 50% tariffs on EU imports To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Will Trump visit his ancestral home in Germany? With the new federal government made up of the conservative CDU/CSU and the Social Democrats (SPD), a new style has also emerged in foreign policy. Former Green Party Foreign Minister Annalena Baerbock was sometimes criticized for being moralizing and patronizing. The new government now wants to focus more on common interests and finding compromises, even with difficult partners, such as the Trump administration. The conflicts between Germany and the US are numerous, and Friedrich Merz and Donald Trump are very different characters. But the German chancellor is determined to engage openly with the US president. Echoing a move by former Chancellor Angela Merkel, Friedrich Merz has invited the US president to visit the homeland of his ancestors. Trump's grandfather, Friedrich Trump, grew up in the winegrowing village of Kallstadt in the Palatinate region of Germany before emigrating to the US. It is not yet known whether Trump will accept the invitation this time. This article was originally written in German. While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
DW
5 days ago
- DW
UK bans sale of disposable vapes – DW – 06/01/2025
Olwen Atanackovic 06/01/2025 June 1, 2025 Only refillable or rechargeable vaping products are now permitted to be sold by UK retailers. British lawmakers hope the ban will protect children's health and reduce litter from single use e-cigarettes cartridges and packaging.
