The owner of Ikea has snapped up Topshop’s former flagship store on Oxford Street in London for £378m ($521m).
The Swedish company will buy 239,000 square feet of retail and office space in the building, which spans across seven floors, and is home to current long-term tenants Nike and Vans.
Following the collapse of Sir Philip Green's retail empire, the deal to buy the long leasehold on the building is expected to be completed in January after a conditional purchase contract was signed.
The new Ikea store is set to open in autumn 2023, and will focus on home-furnishing accessories. It will be the brand’s second smaller store format following the opening of its site in Hammersmith this winter.
Watch: IKEA reports record full-year retail sales
The move forms part of Ikea’s strategy to open inner-city locations and bring the firm closer to customers. It also described the move as a vote of confidence in London's real estate market.
The store will have a focus on home furnishings, with the full range available to buy for home delivery. It is set to create around 150 new local jobs.
Peter Jelkeby, the head of Ikea’s UK and Ireland business, said: “Even though online shopping continues to accelerate at a rapid pace, our physical stores (large and small), will always be an essential part of the Ikea experience – as places for inspiration and expertise, community and engagement.
“Bringing Ikea to the heart of Oxford Street – one of the most innovative, dynamic and exciting retail destinations in the world – is a direct response to these societal shifts and an exciting step forward in our journey to becoming more accessible.”
Krister Mattsson, managing director of Ingka Investments, part of Ikea's parent company, said: “We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers.
“This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London.”
Arcadia Group, which owned Topshop, went into administration in November last year, and its various other brands were also auctioned off, including Evans, Burton and Dorothy Perkins.
It officially filed for administration, a form of bankruptcy, after last minute rescue talks failed, ending Sir Philip Green’s reign as king of the high street.
Watch: ASOS scoops up Topshop, other Arcadia brands