Ikea to close first large UK branch with 350 potential layoffs

Ikea is set to close its first large UK store in Coventry city center over the summer putting 350 jobs at risk.

The company said that the shop has been losing money since it opened in 2007 as many shoppers visit retail parks and buy online.

The retailer said it would like to retain as many employees as possible, although the closest outlets are in Birmingham and Nottingham which are 30 and 50 miles away respectively.

The store in Coventry was one of the first to try a new city centre store format to respond to the changing habits of its customers. With a seven-story building, the company hasn’t been able to make the store more cost-efficient or repurpose it.

Peter Jelkeby, the country retail manager and chief sustainability officer for Ikea UK and Ireland, said the Coventry closure was not an easy decision:

“At Ikea we are constantly challenging ourselves to find ways to meet the needs of our customers and we will continue to try and test, investing in stores, fulfilment centres, city centre formats and our digital capabilities to make Ikea even more affordable, convenient and sustainable.”