Home Business News Ikea to close £35m store with 352 jobs at risk

Ikea to close £35m store with 352 jobs at risk

by LLB Reporter
4th Feb 20 12:22 pm

The Swedish furniture and home improvement giant, Ikea has confirmed they are to close their first ever store since starting in the UK 33-years ago.

The Swedish company said the £35m store opened in 2007 in Coventry, the company said the store was too expensive to operate.

It is expected that 352 workers are going to lose their jobs. Ikea tried several initiatives to keep the Coventry store open.

The company are to start consultation with the staff and said, it “has the ambition to retain as many people as possible within Ikea and, where this isn’t possible, support them to find new employment.”

Dave Gill, national officer for the Usdaw union said, “This is devastating news for Ikea staff working at the Coventry store.

“We will now enter into meaningful consultation talks with the company to interrogate the business case for this proposed closure.

“Our priorities are to seek redeployment opportunities, minimise compulsory redundancies and secure the best deal we can for our members.

“In the meantime, Usdaw is providing our members with the support, advice and representation they need art this difficult time.”

Ikea said, “these have not resolved the fundamental challenges connected to the location and the format of the store.”

In a statement Ikea said, “The store was built over seven levels, which resulted in a significant impact on the operating costs of the store and the shopping experience for customers.

“In addition, the changing behaviour of customers in the area who prefer to shop in retail parks and online has resulted in visitor numbers being substantially lower than expected and continuing to decrease over time.

“These factors have led to the store making consistent losses.”

Peter Jelkeby, country retail manager and chief sustainability officer for Ikea UK and Ireland said, “Although this isn’t an easy decision, this is the right decision for the long-term success of Ikea in the UK.”

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