Ikea, the Swedish-based home furnishings group, said yesterday that sales growth had accelerated in the past financial year thanks to price cuts and record expansion in its store network.

The discount retailer said its sales in the year to August 31st had risen by 15 per cent to €14.8 billion, compared with a rise of 13 per cent to €12.8 billion in the previous year.

Ikea opened a record 18 stores in the financial year: 15 in Europe and three in North America.

"It was a very good year," said Marianne Barner, Ikea's global information manager. "Our focus on lowering our prices has had a very positive effect."

Ikea reduced prices by 3 per cent during the year. The unlisted group, controlled by billionaire founder Ingvar Kamprad, does not disclose profit figures.

Sales grew strongly in China and the Nordic countries, although the breakdown between regions was little changed. A total of 81 per cent of Ikea's sales were in Europe, with North America accounting for 16 per cent and Asia/Australia 3 per cent.

Ms Barner said Ikea planned to enter the Japanese market with two stores in the current financial year. Overall, the group expected to add 19 stores to its existing network of 201 outlets in the period.

Responding to complaints about poor customer service at Ikea stores, Ms Barner said the group still planned to push ahead with expansion there.

Ms Barner rejected a call this week by Sir Terence Conran, founder of UK furniture retailer Habitat, for Ikea to raise its prices to spend more on staff.

"Our strategy is to keep lowering our prices," Ms Barner said.