FURNITURE giant IKEA could be on its way to York, the company revealed today.

The Scandinavian retailer says it is talking with city council chiefs about the possibility of establishing a store as part of its expansion plans.

If a deal were to be done, an IKEA outlet could bring tens of millions of pounds into the local economy with hundreds of jobs for city people.

IKEA's interest in York was enthusiastically received by city chiefs, with business and tourist bosses hailing it as "very good news".

The company said any plans were at the very early stages and had not gone past general inquiries. City of York Council said it would wish to talk to IKEA and help the company if it was serious about coming to the area.

Last year, 33 million people visited IKEA across the UK.

The majority of jobs created by a new IKEA store opening, including sales positions, chefs, engineers, designers, carpenters and customer service staff come from areas close to where the store is located.

IKEA is the world's largest furniture retailer - with the UK providing its second biggest market.

An IKEA spokeswoman said: "As part of our expansion plans, we are in discussion with various councils across the region, including York, regarding the establishment of new IKEA stores."

Damon Copperthwaite, the council's acting assistant director for city development, said tentative inquiries had been made, but had gone no further to date.

"Tentative inquiries were made not directly through the council but through one of our partners. There was a conversation but that's as far as it went," he said.

"We would want to talk to IKEA and help them if they were serious about coming to York and see what opportunities may, or may not, exist."

Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said: "It is early days but this is good news.

"These stores add a little bit to the general offer of York and they tend to become mini-destinations themselves. We are hopeful a deal can be struck."

Gillian Cruddas, chief executive of York Tourism Bureau, said: "This would act as an added incentive to come to York to shop, especially for the day visitor market, and it would be yet another good reason to visit the city.

"We are already having a great deal of success in promoting York as a place to buy gifts and products for the home, and IKEA would bring greater choice for our visitors."

In February this year, the company shut its flagship superstore in Edmonton, North London, on its opening night after four people were crushed, one suffered "chest pains" and another was stabbed as thousands of bargain-hunters stampeded outside the shop.

Where would they put it?

IF IKEA were to come to York a number of possible sites could be among the likely contenders to house the furniture giant's new shop.

These could include the former ikon & diva nightclub premises at Clifton Moor, or at Monks Cross, in Huntington.

Henry Boot Developments, which has transformed the Clifton Moor site, today said it was unaware of IKEA's plans and had not been approached by the company.

In June, IKEA unveiled plans to build a series of smaller stores in town centres across Britain.

In what was a departure for the retailer, which has previously opted for large out-of-town developments, IKEA said it could move towards a smaller format for its stores.

That could open up large vacant sites in York city centre, or could be a carrot for any future shopping centre built on the Coppergate site.

Updated: 10:05 Wednesday, August 03, 2005