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Ikea’s $5.8 billion initiative to open smaller format “city centre” stores to get closer to shoppers in dense urban areas is landing in London.
Ingka Centres, Ikea’s retail real estate arm, has purchased Kings Mall Shopping Centre in the Hammersmith neighborhood of West London for $220 million and will install its new concept there along with co-tenants.
Ingka last year announced its plan to place city centre stores in 30 major cities in Europe, Russia, Asia, North America, and Oceania. Most will be placed in mixed-use community destinations that could include retail and entertainment, as well as health care and educational facilities.
Ikea began building city centres in China last year. The Hammermith location will be its first in England.
Ingka Centres operates 45 malls and shopping centers in Europe, Russia, and China that it claims draws 480 million visitors annually. Its plan is to grow to 70 locations hosting 1 billion visitors by 2025.