Ikea shelves plan for a new Sussex store due to ‘changing shopping habits’

Ikea has revealed that sales jumped over the past year due to customers returning to its shops and price increases in the face of cost inflation.
Ikea plans to open eight new sites in the US alongside nine planning studios and order points, The Financial Times reports

Ikea UK has said it’s scrapping planned development of a new store at the New Monks Farm site in Lancing, Sussex.

The Swedish furniture giant had selected the site in 2016 and was granted planning permission in 2020 as part of a £170m regeneration plan.

However, the flat-pack furniture seller has pulled the plug, owing to “customer shopping habits…changing fast.”

In a statement it said increasing urbanisation and also an increase in online shopping, brought on by the pandemic.

There was a year-on-year fall in footfall from February 2020 to February 2021 of 34.5 per cent in UK retail parks.

Richard Rands, market expansion manager for Ikea UK and Ireland, said: “This has not been an easy decision to make.

“Today we are operating in an incredibly fast-changing retail environment and customer shopping habits aren’t as they once were.”

He added that although there is “great potential in Sussex” the company “no longer believes that an Ikea store on the outskirts of Lancing is the optimum way to reach customers in the region.”

The plans formed part of a wider project to build 600 homes in the area, while the Ikea store was also set to provide 450 jobs.

Rands added: “Ikea remains committed to growth in the UK and as part of its omnichannel strategy to meet customers whenever and wherever they choose.”