Global economic woes hit Ikea

Ikea CEO Anders Dahlvig admitted Wednesday that the global economic slowdown is affecting his company “quite a lot”, reports Bloomberg News.

Speaking at a retail conference in Barcelona, Spain, Dahlvig also said he expects the furniture giant’s future expansion to occur at a “much lower” pace.

Ikea has plans to open 22 more stores this year.

Dahlvig expects the company to focus capital investment in emerging markets such as Croatia, Slovenia, and the Ukraine in the coming years.

“I definitely see big challenges in the western world and opportunities in emerging markets,” he said.

Today, most of Ikea’s profits are generated in western Europe and the United States.

The retailer’s biggest market is Germany, which accounts for 16 percent of the company’s profits. The next three largest markets are the US, France, and Britain.

Last year, Ikea generated worldwide sales of $31.3 billion dollars at its 260 stores.