Local retailers set to lose out as Ikea opening nears

28th January | retail | Ikea’s new Southampton store will devastate local trade, according to a new report by Experian, the research firm. It says nearby Eastleigh will lose out to the tune of £13.7m, while other towns including Winchester and Fareham will lose £10.7m and £4.4m respectively.

The research confirms fears put forward by independent furniture retailers earlier this month when they told the Furnishing Report they were worried about the impact the new £80m store would have on trade. The Southampton Ikea store is expected to produce annual sales of around £50m.

However, business leaders across the south have played down the findings of Experian’s study, saying many of the traders in the towns said to be affected do not sell homeware, and that those that do are independent retailers with a very different product proposition. The new Ikea store is due to open in two weeks time.

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