Stockholm - Despite posting record sales for its latest financial year, Swedish furniture retail giant Ikea is gearing up for lower demand in several key markets, reports said Wednesday.

Ikea posted global sales of some 21 billion euros (29 billion dollars) for the financial year that ended August 31 and said it was the best in the group's history, Sweden's financial daily Dagens Industri reported.

Ikea's Chief Executive Anders Dahlvig attributed the strong sales to the 22 new department stores that were opened in the US, Europe, China and Russia.

Since 1999 the furniture giant's global sales have almost tripled.

During the recent financial year, growth amounted to 7 per cent, as compared to a 14-per-cent rise in the previous financial year.

"The drop was partly an exchange-rate effect," Dahlvig said, elaborating that with constant exchange rates, growth would have been at 10 per cent.

Regardless, the global economy also had an impact on the company, he added.

"We have underestimated the downturn which is very much linked to the crisis in the housing sector," said the Ikea boss, noting the ripple effect on sales of furniture and soft furnishings.

Scandinavia, Asia and eastern Europe also failed to offset the downturn in main markets such as Germany, the US and Britain, he said.

Ikea, founded by Ingvar Kamprad in 1943, is not a listed company and does not disclose its profitability, but Dahlvig said the group had "strong finances."

"This means we can continue to invest in expansion and efficiency measures," Dahlvig said.

Ikea plans to open some 20 new stores this year, but in 2010 will slow down its expansion plans from around 20 stores by about 10.

"We need to focus on efficiency and consolidate the business after growing so strongly," Dahlvig said, adding that there was also less room for expansion in Europe.

Ikea currently operates 253 stores in 24 countries. (dpa)