MALMÖ, Sweden, Oct 12 Reuters China is still a key growth market for budget furniture retailer IKEA despite the world39;s secondlargest economy showing signs of strain, executives at the biggest IKEA store owner said on Thursday.

China was for several years the fifth biggest market by revenue for Ingka Group, which runs most IKEA stores globally, but it has now slipped to tenth position, accounting for 3.6 of global sales in its 2023 financial year, which ended Aug. 31.

Ingka Group remains committed to China, CEO Jesper Brodin told Reuters, even as some Western companies are seeking to reduce their exposure to the country whose postpandemic recovery has been sluggish.

There is no middle way, you have to either believe and invest or you don39;t, and in our case we are committed to China and the growth and development, Brodin, who visited China last month, said in an interview.

China39;s weight as a market for Ingka Group has diminished in the 2022 financial year it made up 4.3 of global sales, while as recently as 2018 it accounted for 6, the same share as the UK. The company has 37 IKEA stores in China, out of a total of 537 locations worldwide.

Ingka Group overall saw 697 million visits to its IKEA stores in the 2023 financial year, up 7.4 from the previous year. The rate of increase was much higher in China, Brodin said, as stores reopened and shoppers returned.

Ingka sees potential for China to make it back into its top five markets, based on sales in recent…