Final answer:
IKEA's slowed store growth despite higher demand could be due to market saturation, a strategic focus on existing stores or e-commerce, local economic adjustments, and increased competition including from online platforms like Amazon.
Step-by-step explanation:
Although demand for IKEA's low-cost furnishings has increased, the slowing of its annual store growth to fewer than ten new stores a year can be attributed to several factors, such as market saturation, changes in consumer behavior, and strategic company decisions. IKEA may be focusing on improving the profitability and efficiency of existing stores or investing in online sales platforms in response to the growing e-commerce market led by giants like Amazon. Furthermore, as the market adjusts, local economies could influence the pace at which new stores are opened; a surge in prices might be followed by periods where markets require time to stabilize. Additionally, the increase in competition from both online and physical retailers means IKEA must carefully consider where and how fast to expand.