Region loses out on 350 jobs as Ikea walks away from Lancashire store
Ikea has confirmed it is ditching plans to open its second largest store in the UK in the North West after profits at the firm took a major tumble.
The firm was planning to open a store at a new retail park in Cuerden, near Chorley, creating 350 jobs in the process.
The new store was due to open in 2020 but Ikea has walked away from the scheme blaming rising costs and delays.
The firm has been hit by the slump in retail spending and saw its pre-tax profits fall from £140m to £87m.
The company blamed a hike in wages and rising costs for the fall in pre-tax profits.
And Ikea has now confirmed that the new store in Lancashire in no longer viable.
The retail sector has taken a battering in recent months with firms ranging from House of Fraser to Carpetright reporting major problems.
Last week Mothercare announced it was closing 50 stores in a bid to stay afloat and a string of firms have entered into CVAs.
Richard Rands, Ikea’s property manager for UK and Ireland, said: “Our decision is due to increased development costs and delays outside of Ikea’s control which no longer make this location viable.
“We will continue to look for new sites and opportunities in this area as part of our commitment to expansion in the UK. At IKEA, we want to be more accessible, bringing our unique home furniture expertise and product range closer to more customers, and we look forward to exploring new opportunities.”
Ikea, whose founder Ingvar Kamprad died in January, opened its first UK store in Warrington in 1987.
Recent openings have included Reading, Sheffield and Exeter. New stores are planned for Greenwich in London and Brighton.
After a seven-year hiatus Ikea has recently opened several stores in quick succession, including in Reading, Sheffield and Exeter. It is also planning a fourth London store in Greenwich and another in Lancing, near Brighton.
Lancashire County Council said it had been left ‘extremely disappointed’ by the decision.
Geoff Driver, the leader of the council, said: “IKEA have notified us that they wish to withdraw their plans for a new store at the Cuerden development site.
“This is extremely disappointing and we will hold discussions over the next few weeks with IKEA, the main anchor occupier for the retail element of the strategic development site at Cuerden.
“All parties agreed to the timescales more than a year ago and we have been working together consistently to meet all deadlines.
“We appreciate that there is a current state of uncertainty in the UK retail market generally, and we know there have been rising costs. However, this still remains a great investment opportunity. The site is in a very sought after location, right on the motorway network with planning consent already granted.
“Lancashire County Council will continue to work hard with their partners, the Eric Wright Group and Brookhouse, to ensure they reach the best possible outcome for Lancashire.”
