topshop ikea
The flagship store has been bought in a £378 million deal (Picture: Matthew Chattle/Barcroft Media via Getty Images)

Ikea is buying the former flagship Topshop store on Oxford Street in a £378 million deal.

The Swedish company will open the new shop in London in Autumn 2023 after Sir Philip Green’s Arcadia Group collapsed last year.

The sale will see three floors of the iconic building sell furniture, kitchen appliances and home accessories.

It will complete in January after a conditional purchase contract was signed.

Another new Ikea in Hammersmith, west London is due to open in the next few months.

The 214 Oxford Street property was once the crown jewel in Sir Philip’s retail empire, which fell victim to the Covid pandemic, along with many other high street stores.

Peter Jelkeby, the head of Ikea’s UK and Ireland business, said today physical stores ‘will always be an essential part of the Ikea experience’.

He added: ‘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 a more accessible I.’

Krister Mattsson, managing director of Ikea owner Ingka Investments, which owns most IKEA stores, said she was ‘delighted with the agreement for a property on one of Europe’s busiest shopping streets’.

People out and about pass the now closed Topshop store on Oxford Street on 26th May 2021 in London, United Kingdom. As the coronavirus lockdown continues it's process of easing restrictions, more and more people are coming to the West End as more businesses open. (photo by Mike Kemp/In Pictures via Getty Images)
The store has been boarded up for months now (Picture: In Pictures via Getty Images)
London, UK ??? November 19, 2011: Ikea furniture retail store in Brent Park Wembley
Ikea will also open a new store in Hammersmith, west London, this year (Picture: Getty Images)

She said: ‘It represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers.’

The move completes the sell-off of the Arcadia Group’s assets.

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ASOS bought Topshop, Topman, Miss Selfridge and HIIT for £330million in February, although the deal did not include physical stores.

Ikea has closed some outlets across the UK over the past few years, including one in central Coventry and two trial shops in the capital.

It will have 23 stores across the country when the Oxford Street shop opens.

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