Ikea announced today another stage in its transformation as it announced that it would be cutting over 7,000 jobs worldwide as well as ploughing more money into its online business, existing outlets and new high street stores.
The company employs 160,000 staff and although 7,000 jobs are to be lost now, the company believes that 11,500 jobs will be created as it rolls out its smaller store format over the next two years.
I think this all sounds like the company is going in the right direction and it could potentially be an attractive tenant for landlords seeking to fill big spaces vacated by department stores on the UK high street.
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I’ve said this before, but given the rate of retail space closures – and the prospect of more closures and not less – I would have thought that Ikea would be able to get new premises at decent rents given it’s a buyers’ market at the moment.
Also, landlords will probably be falling over themselves to welcome a company that is likely to generate a lot of foot traffic. Maybe Ikea could potentially pay them in meatballs?