The Swedish division of global home furnishings giant IKEA reported pre-tax profits of 2.1 billion Swedish crowns (189.8 million Euro) for the 2008 fiscal year, adding that shops remain crowded despite the financial crisis, as buyers look for bargains. While profits remained strong for IKEA AB, the parent company which controls all of IKEA’s operations in Sweden, figures were down slightly from the record 2.4 billion crowns in profits reported in 2007. IKEA’s retail stores increased their turnover by six percent to 12.3 billion crowns, despite signs of the weakening economy.

“We believe we have a very strong offering when people feel the need to have something left over in their wallets,” said Ylva Magnusson, a spokesperson with IKEA’s retail and online sales unit. Overall, 32 million people visited IKEA stores in Sweden in the last fiscal year which ran through August 2008. While the financial crisis didn’t fully emerge until September, which marks the start of IKEA’s new fiscal year, Magnusson said the company remains confident about the future. “We’re not immune to world events. But things are still going well, even if it’s not quite as good as we had planned and hoped for,” she said.

Currently, IKEA AB has no plans to cut back on costs and expansion plans continue to move forward. Next year, the company plans to open new stores in Uppsala and Malmo, with additional stores planned for Helsingborg in the south, Västeras in central Sweden, and Uddevalla in the west. Several of the IKEA subsidiaries included in IKEA AB earn money not only from serving the company’s Swedish stores, but also from supplying foreign operations of IKEA’s massive global operations.