Ikea struggles to obtain planning consent for three London stores
Ikea’s chief executive has said he is looking to open three new superstores in London but was having difficulty obtaining planning consent.
In an interview with the Wall Street Journal, Mikael Ohlsson stated he would like to build the stores in the capital’s run-down industrial areas but was struggling to obtain the right traffic planning solutions. He said: “In the UK, they want retail to get into the city. But that’s not good for furniture retail. Especially in bulk. We prefer to be farther away from the city centre.”
He added: “But the permits are taking a lot of time. Rules are rules.”
Ikea’s net profit in its 2010 fiscal year rose 6.1% to €2.7 billion and revenue increased by 7.7% to €23.1 billion. As consumers look to affordable furniture ranges in the current economic climate, the retailer is gaining market share in every market it operates in.
Ikea has shrugged off worries over rising commodity costs by cutting its prices by 2%-3% this year and said it plans to do the same next year.
