- Ikea received 3,730 applications for jobs at its new London Oxford Street store—the largest recruitment number ever for the retailer. The company’s people leader says the prime location, livable wage, and employee perks helped it lure talent.
Ikea’s Swedish meatballs and contemporary furniture are coming to one of London’s biggest shopping hubs this May. Workers are clamoring to get in on the action.
The $46.5 billion furnishings retailer is opening up a store on Oxford Street later this spring, and jobs at the location reeled in a whopping 3,730 applications within five days of posting just 150 open roles. That number shattered all of Ikea’s former recruitment records, and their system was flooded with so many candidates that they had to close the application process.
“We are quite an iconic brand, and people want to be associated with Ikea. So we do see volume applicants come through, but not quite to this extent,” Gayle Peverley, people and area manager for Ikea’s London locales, tells Fortune. In comparison, she says, the Hammersmith store—located nearby, and a similar size to Oxford Street’s—received about half as many applicants when it debuted in 2023.
The company was primarily hiring in a few key functions. It started with leadership positions, then turned to filling food slots and multi-skill roles who can work the floor and replenishment. Ikea says it will employ those who are innovative, with good problem-solving skills, and want to enact positive growth for people and the world. The memo says that whoever makes the cut “will be offered multi-skilled roles, working across different departments, where no two days are the same.”
Ikea is just one of many retail giants hoping to please talent by increasing wages, covering student loans, and offering alternate scheduling. Walmart sought to retain its burned-out middle managers by increasing their salary up to $620,000; Sam’s Club bumped up pay to compete with Costco’s draw; and Land O’ Lakes introduced flexible schedules to keep workers happy. Retailers are flexing perks to draw in employees and convince them the industry isn’t a thankless dead end.
While Ikea is a hugely popular brand in the U.K. and beyond, this store outperformed all others.
Peverley has a few guesses as to why the Oxford Street locale was a smash success: the popularity of the area, the livable salary, desirable perks, and brand values. And as the store has already spent many hours narrowing the applicant pool down to 300 prospective employees, she has witnessed a new league of quality candidates. The stars aligned for this shop, but the people manager says there are key factors that are replicable for other bosses.
The perfect storm: Why Ikea is hot on Oxford Street
Oxford Street is home to the likes of Selfridges, Primark, and H&M. Now Ikea has made its way to the famous high street, and job seekers are jumping at the opportunity. Peverley says the store’s location is a huge pull.
“Oxford Street is an iconic place. In the country and internationally, Oxford Street is recognized. So of course that attracts such a variety of different characters and candidates to come and join the Ikea team that will be working there,” she says. Plus, “the building itself is beautiful.”
But one of the biggest incentives of working there is being able to afford an apartment and weekly groceries. Ikea is a Real Living Wage employer, paying employees a wage that covers basic needs with at least some discretionary spending. The company starts all employees off on a salary of about $17.15 hourly—the living wage rate set for London.
Read more from Fortune
“We’re a real living wage employer, which we’re extremely proud of. But hearing feedback from the workers, it’s not all about salary, it is about the broader package. We’re connecting those dots together in Oxford Street,” Peverley says.
Ikea’s most cherished benefit might be the Flexible Work Arrangement, where employees have one-on-one meetings with their managers to figure out a schedule that works best for them. Employees also get a 15% discount on store items and free healthy meal options every day on the job. Other perks include enhanced parental leave, in which all parents get 16 weeks of PTO across the board, including adoptive parents; life assurance, a tax-free payout to family members if an employee dies; and a well-being center with mental, physical health, and nutrition resources.
“Retail is no longer sexy, and I think it’s been important for us to understand why that is the case. And what comes to the surface, quite clearly, is flexibility is a big piece of something that they require, and it means something different to everybody,” Peverley says. “It was also voiced and echoed by workers that subsidized food is one of the most valued benefits. So we offer free fruit, salad, hot and cold drinks, and a healthy meal every day for all of our coworkers.”
But one of the most important ingredients to the secret sauce of Ikea’s recruitment success is promoting their value of sustainability. After all, more than 70% of Gen Z and millennials said they consider an employer’s environmental policies when job hunting, according to a 2024 study from Deloitte. Ikea is resonating with prospective workers—and companies should take note.
“When you ask jobcseekers, ‘Why are you here?’ they really connect back to the family heritage, the brand, and particularly the sustainability piece,” Peverley says. “Try not to underestimate the importance of sustainability and being a great employer. That came through quite strongly with the candidates last week.”
