The world's largest furniture retailer is planning to invest £800 million in the UK over the next 10 years. The plans by Swedish company Ikea, are expected to create up to 12,000 new jobs over the period. Eight of the stores will open up during the next five years at a cost of around £300 million.

The development plans are likely to come as a further shock to the troubled group MFI, which has been trying to re-invent itself under new management.

Ikea currently has 10 stores in the UK, the first having opened in 1987. They currently employ 50,000 people worldwide and 5000 people in the UK.