What's next for Sheffield IKEA as chain announce first UK store closure?
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The company said it will close the doors of its £35 million Coventry branch, which opened at Christmas in 2007, with 352 workers expected to lose their jobs.
The Swedish furniture and home improvement giant added the site in the city centre was too expensive to keep operating and had lost customers to retail parks and online shopping.
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Hide AdIn a statement, Ikea said: "The store was built over seven levels, which resulted in a significant impact on the operating costs of the store and the shopping experience for customers.
"In addition, the changing behaviour of customers in the area who prefer to shop in retail parks and online has resulted in visitor numbers being substantially lower than expected and continuing to decrease over time.
"These factors have led to the store making consistent losses."
The company said it tried a number of initiatives to keep the store open but "these have not resolved the fundamental challenges connected to the location and the format of the store".
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Hide AdThe retailer first entered the UK in 1987, opening a site in Warrington, Cheshire.
It now has 22 stores and is looking at rolling out more city centre locations - but far smaller than the Coventry site.
The firm will start a consultation with the 352 workers affected and said it "has the ambition to retain as many people as possible within Ikea and, where this isn't possible, support them to find new employment".
Dave Gill, national officer for the Usdaw union, said: "This is devastating news for Ikea staff working at the Coventry store.
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Hide Ad"We will now enter into meaningful consultation talks with the company to interrogate the business case for this proposed closure.
"Our priorities are to seek redeployment opportunities, minimise compulsory redundancies and secure the best deal we can for our members.
"In the meantime, Usdaw is providing our members with the support, advice and representation they need art this difficult time."