Habitat is closing its Regent Street store in Central London because it “no longer fits” with the retailer’s strategy.
The 37-store furniture retailer, owned by restructuring firm Hilco, said it will “focus its attention” on its flagship store on Tottenham Court Road, which Habitat said is Central London’s top destination for furniture retailers.
The Regent Street shop, which opened in 2006, will close on March 19. All staff will be transferred to alternative locations.
Habitat said that since it opened, the famous shopping street has become “predominantly fashion-led and depends highly on tourist customers”.
The retailer said: “Given that Habitat is now focusing on expanding in the furniture and upholstery categories, the location no longer fits with future strategy.”
Habitat said it will continue to “refocus attention on stores which can offer a full and comprehensive offer”. The retailer will open more stores in the UK, Ireland and Europe in the coming year.
Habitat director Jonathan Crawley said: “Our company strategy has been to focus on our flagship operations in London which are capable of showing the full Habitat Collection to our customers.
“We will continue to invest in and expand our operations in key sites around London and the UK, together with the recently announced expansion plans across Europe which has already seen a new e-commerce platform roll out towards the end of 2010 and will see the opening of three additional European stores before the end of 2011.”
Landlord the Crown Estate said: “The Crown Estate can confirm that following its approach to the owners of Habitat, it has concluded a transaction whereby Habitat will surrender its lease and leave Regent Street, in exchange for a premium.
“The acquisition forms part of The Crown Estate’s ongoing retail strategy for Regent Street that has turned the Street into an international retail destination.”