Swedish furniture giant Ikea is looking to acquire shopping centres in the United Kingdom as part of an expansion plan. This way, the retail chain wants to benefit from lower retail property prices.
The chain is reported to have expanded its British real estate team because, according to Retail Week, it is looking for 'cheap' shopping centres to accelerate its urban expansion plans. Ikea wants at least one shopping centre in Greater London and is also said to be looking for other centres all over the country.
The retailer want to benefit from the declining valuations of many shopping centres: in the United Kingdom in particular, quite a few shopping centres are vacant, which means that prices are falling. For Ikea, it is an opportunity to open new branches in central locations.
The question is whether this is the beginning of an important evolution: in Thailand, Ikea is already renting a two-floor building in a shopping centre. In China, the group even built three of its own shopping centres, under the Livat brand name. By opting for shopping centres, the retail chain could also open smaller stores in places where there is more footfall.