Scot Dutchy wrote:Ikea halts new Preston store as UK profits fall

Retailer says Lancashire outlet no longer viable as profits slide from £140m to £87m

Ikea has reported a sharp fall in UK profits and pulled out of opening what would have been its second-largest store in the country.

The Swedish retailer blamed higher wages and the cost of investments in its stores and website for a near-40% slump in profits in the year to 31 August 2017. Pre-tax profits slid from £140m to £87m, according to accounts filed at Companies House.

The figures coincided with Ikea’s decision to abandon a plan to open one of its famous blue sheds in Cuerden, near Preston. The company said the store, which would have created 350 jobs in 2020, was no longer viable.

The decision is another blow for the retail sector, which is reeling after a string of chains including Mothercare, Carpetright, New Look and House of Fraser announced plans to close stores.