Flat-pack furniture giant Ikea is to shut one of its large UK stores for the first time since it began trading in the UK 33 years ago.

The Swedish retailer said the site in Coventry city centre, which opened in 2007, will close with the loss of 352 workers.

It is the latest evidence of the tough conditions facing UK retail, amid shaky consumer confidence and changing shopping habits.

Debenhams, Mothercare, Asda and Sainsbury's are among the big brands to have closed stores or announced plans to cut jobs.

Ikea said in a statement: "The store was built over seven levels, which resulted in a significant impact on the operating costs of the store and the shopping experience for customers.


"In addition, the changing behaviour of customers in the area who prefer to shop in retail parks and online has resulted in visitor numbers being substantially lower than expected and continuing to decrease over time.

"These factors have led to the store making consistent losses."

Ikea said various initiatives to turn around the store's fortunes had not worked and that trying to downsize or redevelop the site was "not a realistic option".

The retailer opened its first UK store in Wembley, north London, and now has 22 across the country.

Best known for its larger format outlets, its focus today is developing smaller sites.

Ikea said it would start a consultation with the Coventry workforce and would aim to retain as many as possible within the company.

Peter Jelkeby, country retail manager for Ikea UK and Ireland, said: "Although this isn't an easy decision, this is the right decision, this is the right decision for the long-term success of Ikea in the UK."

Dave Gill, national officer for trade union Usdaw, said: "This is devastating news for Ikea staff working at the Coventry store."