Ikea may develop smaller stores in Britain to abide by planning laws

FURNITURE giant Ikea, whose large-store format was behind the Government’s controversial move to scrap retail planning guidelines, is considering the development of smaller stores in Britain to meet planning laws there, it was reported at the weekend.

The company is believed to be rethinking its strategy of rolling out giant stores to avoid falling foul of British government policy on retailing. The company has 12 stores in Britain, but was understood to have dragged its heels on entering the Irish market until laws were changed here to cater for its 30,000 square metre preferred format.

Environment Minister Dick Roche came under fire from Irish retailers earlier this month after he was perceived as climbing down in response to Ikea pressure.The Government’s change to planning policy paved the way for Ikea to open its first Irish outlet in the disadvantaged north Dublin suburb of Ballymun.