Ikea is searching for a new 700,000 sq ft distribution hub to fuel its plans to double its UK business by 2020.
It has instructed Colliers International to find a warehouse, and is focusing on the South, where it does not yet have a large warehouse facility.
Its two main distribution centres are in Doncaster and Peterborough and it also has a smaller 150,000 sq ft fulfilment centre in Corby, Northamptonshire.
An Ikea spokesperson said: “In the ever changing, fast-paced retail environment we want to provide our customers with a more simple convenient and enjoyable shopping experience both online and in-store. As such, we are reviewing our expansion strategy on an ongoing basis. This includes the rebuilding and adaptation of our stores to better serve their local customers, developing our multi-channel offer and choosing new Ikea locations. We are considering the South of England amongst other sites as a potential location for Ikea, however we have nothing to confirm at this point in time.”
Ikea has big plans for its UK store portfolio. It has shops in the pipeline in Exeter and Greenwich, both of which are awaiting planning, and Sheffield, which is on site next to Meadowhall Retail Park.
It currently has 19 UK outlets, which will increase to 20 once Sheffield opens in the summer. At the beginning of this year it also held a public consultation for a new shop in Lancing, near Brighton.
Ikea has joined a number of traditional big-box retailers which are trialling smaller high street showrooms. It debuted a smaller format showroom, in which customers can browse products and order online, at Westfield Stratford, E20, and is planning on opening five more of these.
Ikea is planning on doubling the size of its UK business by 2020 and last year recorded its fifth consecutive year of growth. Sales grew by almost 8% to £1.7bn in the year to 31 August 2016 and its market share grew by 0.5% to more than 8%.
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