Ikea has bought the iconic Oxford Street branch of Topshop in London for £378million, the retailer has confirmed.
The site was put up for sale for £420million in May after its parent company Arcadia collapsed into administration last year.
Now the Swedish retailer says it has bought the site and will reopen it as an Ikea in Autumn 2023.
The deal is meant to bring Ikea closer to shoppers in cities due to "increasing urbanisation".
The Oxford Street property has 22,200 sq metres of space over seven floors.
Ikea UK & Ireland country retail manager Peter Jelkeby said: "Today we are seeing societal changes that have evolved customer behaviours and the retail industry as a whole.
“Bringing Ikea to the heart of Oxford Street - one of the most innovative, dynamic and exciting retail destinations in the world - is a direct response to these societal shifts and an exciting step forward in our journey to becoming a more accessible Ikea."
Ikea said the move will create 150 jobs.
Krister Mattsson, managing director of Ingka Investments, part of Ikea's parent company, said: “We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers."
Topshop was the jewel in Sir Philip Green's Arcadia crown, which he bought privately for £850million in 2012.
In January this year the business put its flagship Oxford Street store on the market - triggering fears the iconic store, whose windows were once modelled by Kate Moss, might never reopen.
The former Topshop site in Oxford Circus has been vacant since ASOS went on to buy Arcadia brands - including Topshop, Topman, Miss Selfridge and leisurewear range HIIT - for £330million in February.
The deal didn’t include physical stores - instead, shoppers can now only purchase clothes from these retailers online via the ASOS website.
The retailer currently has 27 stores in the UK.
As well as the Oxford Street branch, Ikea also plans to open a smaller store in Hammersmith, West London.
Ikea is also reported to have looked at other sites in Oxford Street such as the former BHS store, as part of its plan to open more city centre branches.
The retailer said last year it had drawn up a list of 40 major cities around the world “to introduce their vibrant, urban destinations”.
Debenhams could be about to reopen a physical store after shutting its last ones in May this year.
The chain, which first opened in 1778, shut its last remaining 12 stores earlier this year as new owner Boohoo took it online-only .
The online fashion giant snapped up the 243-year-old department store chain for £55million back in January this year - but the deal didn’t include its physical stores.
