They may have given a whole new meaning to bulk-buying, creating a mass market for self-assembly furniture, fabrics and household goods in 30 countries and in 11 huge out-of-town
stores around Britain. But the government is now questioning the rapid expansion of Ikea
and, implicitly, other big out-of-town retailers because they generate too much traffic and
undermine established town centres.
Matters have come to a head, with John Prescott raising concerns about the philosophy of the
Swedish wholesaler by rejecting plans for another of its mammoth stores in Stockport,
Greater Manchester.
Noting that it planned to treble its number of British outlets, the deputy prime minister, who
is in charge of planning, has told the company it should look at smaller sites and consider
breaking up activities - "disaggregating", in the jargon of the trade.
That means opening more specialist shops in city centres and on the edge of towns rather
than opting for large sites beside trunk roads and motorways, a key to the company's global
philosophy of gearing almost all its trade _ an estimated 89.6% - to car-borne shoppers.
The Swedish giant, which has several other big schemes in the planning pipeline, is now
preparing for a legal battle which could determine the course of out-of-town shopping. Early
next year it will appeal against Mr Prescott's decision in the high court, partly on the
grounds that the deputy prime minister overruled a recommendation from a government
planning inspector who said, after a public inquiry, that the Stockport store should go ahead.
Ikea says its case, as the "classic bulky goods retailer", is simple: "People are attracted by
the offer and price, which is partly achieved by the fact that the customers do some of the
work themselves - this includes transporting the goods home and assembling them there."
In a letter to Ikea Mr Prescott said the company had not demonstrated that there were other
sites in or adjacent to a town centre that "might be suitable for retailing the type of goods
envisaged in a reduced, or disaggregated form." Moreover, he said the proposed store would
be "likely to have an impact on the vitality and viability of nearby centres".
Retail analysts said the deputy prime minister's decision could have significant implications
for other developments. Ikea alone faces another planning inquiry next year into a proposed
new store at Southampton while, more controversially, it is eyeing another site beside
junction 15 of the M1 near Northampton.
Jonathan Baldock, associate director of planning at analysts CB Hillier Parker, said Mr
Prescott's "comprehensive dismissal" of Ikea raised more fundamental questions for other big
retailers.
"This is perhaps an indication that the government is really very serious about attempting to
change travel patterns and reduce car use," he said. Food retailers, for example, were
starting to recycle derelict land, moving back into city centres with smaller stores. But they
were also diversifying into non- food areas, such as white goods, by expanding, or rebuilding
existing stores - raising more planning questions about increased car use.
Neil Sinden, policy director of the Council for the Protection of Rural England, welcomed
Mr Prescott's tougher approach. "It is not every day that an inspector's decision is
overturned," he said.
"This reaffirms the government's commitment to promoting retail developments which do not
rely on excessive car use.
"It should certainly send a clear signal to other retailers that ministers are serious in
promoting town centres."