Jobs at risk in Norwich
IKEA is proposing closing its Norwich Order and Collection Point
Last updated 9th Jun 2021
IKEA UK has announced the proposed closure of its Order and Collection Point in Norwich.
The IKEA Norwich Order and Collection Point opened in November 2015 as part of the retailer’s smaller-format test programme, to better understand how customers want to shop in cities. Despite a number of actions taken over the years to optimise the Norwich Order and Collection Point, such as investment in store layout and merchandising, unfortunately it has not been able to meet its sales and profitability targets.
After careful evaluation, IKEA is proposing to close the unit this summer and will now enter a period of collective consultation with the 39 co-workers affected. IKEA hopes to retain as many people as possible within the IKEA business and, where this isn’t possible, support them in finding new employment.
Marsha Smith, Area Manager for Midlands and East Anglia, IKEA UK said:
"We are incredibly thankful to our co-workers at the IKEA Norwich Order and Collection Point who have contributed enormously over the last few years, and our hope is that as many as possible will continue their career journey with us.
"We also feel privileged to have been part of the Norwich community and we deeply appreciate the support we have received from our customers, who we remain committed to serving in the best possible way."
IKEA remains committed to growth in the UK and continues to test and explore how best to meet its customers’ needs in a fast-changing retail environment.
Clive Lewis, Labour MP for Norwich South said:
"I'm sorry for everyone who's losing their job. Many will have worked diligently throughout the pandemic as the company turned stores into distribution centres for online orders during lockdown. Today's announcement will feel like a slap in the face for that loyalty.
"These local employees have found themselves in the eye of a storm hitting bricks and mortar retail hard. Almost 40% of retail sales were online last month, 25% up on May 2019 - the previous year before the pandemic emerged. Retail analysts say it's doubtful many of these people will go back to shopping in-store.
"Retail workers are facing a Covid double whammy. The Resolution Foundation thinktank forecasts that low-paid workers are most at risk of losing jobs when furlough ends in September.
"All of this really matters because retail is the UK's largest private employer. My worry is this government has no strategic plan to support the recovery of employment in sectors hit hardest by Covid. And the support it is offering is underwhelming - including the woefully under-resourced 'restart' grant scheme."