Ikea has announced it will take over Topshop's former flagship store on London's Oxford Street, marking a significant shift in the retail landscape. The Swedish furniture giant's move into the iconic location reflects the booming demand for home furnishings, driven by the pandemic as people spent more time at home.
The homewares market, including furniture and accessories, is expected to grow by 9.4% this year, according to GlobalData. Over the next three years, growth is projected to continue between 2.3% and 3%. Analysts note that many consumers have reassessed their homes during the pandemic, potentially leading to increased demand for renovations and new furnishings.
Ikea's high street expansion puts it in competition with H&M, Zara, and other retailers that have launched specialist homewares chains. The company plans to open its Oxford Street store in 2023, offering small items for immediate purchase and showcasing larger furniture for home delivery. Another outlet is scheduled for Hammersmith this winter.
The shift to high street locations is also driven by sustainability concerns, as city-centre stores allow shoppers to use public transport rather than cars. However, the homewares sector has not been immune to hardship, with a net 821 stores closing since 2019. Ikea's move will be closely watched as a potential model for other brands.
