Children's Clothing Store Industry in Kongsvinger: Current Situation and Future Opportunities

Overview of the Children's Clothing Store Industry in Kongsvinger

Kongsvinger has a small but dynamic children's clothing store industry with two registered companies. The industry has shown significant variations in sales and number of employees over time, with a strong increase in 2021 and 2022, followed by a dramatic decline in 2023. In 2025, there is a mild increase in sales, but the number of employees has fallen back to 2020 levels. One of the companies, Arbeidsbutikken AS, has been in deficit and has negative EBITDA margins, indicating potential challenges for the industry.

Key Points:

• Two companies in the industry, with a combination of AS organizational forms.
• Sales peaked at 3.1 million NOK in 2021, but fell to zero in 2023.
• The number of employees reached a maximum of 9 in 2023, but is now reduced to 1 in 2026.
• One of the companies has been in deficit and has negative financial indicators.

Economic Trends in the Industry

Sales and Employees Over Time:

The industry experienced a significant increase in sales from 2019 to 2020 (+417.7%) and from 2020 to 2021 (+323.3%). This was followed by a decline of 7.8% in 2022 and a drastic decline of 100% in 2023. In 2025, there is a mild increase of 88.1% in sales compared to 2024. The number of employees increased significantly from 2021 to 2022 (+133.3%) and from 2022 to 2023 (+28.6%), but fell back to 2020 levels in 2025.

Economic Challenges:

• Arbeidsbutikken AS had a negative EBITDA margin of -147% in 2025 and total debt of 142,000 NOK.
• Hjertebarn AS has no reported sales or revenues, which may indicate an early stage or low activity.

Registered Companies in Kongsvinger:

1. Hjertebarn AS (Brugata 16, Kongsvinger)

• Established: 2022-11-12
• Organizational form: AS
• Number of employees: 1
• Bankrupt: No
• Financial data: No reported sales or revenues.

1. Arbeidsbutikken AS (Engens gate 1, Kongsvinger)

• Established: 2015-09-28
• Organizational form: AS
• Number of employees: 0
• Bankrupt: No
• Financial data: Negative EBITDA of -133,000 NOK in 2025, total debt of 142,000 NOK.

Organizational Forms:

• AS is the only organizational form in the industry, with one company (Hjertebarn AS) and a combination of AS form for Arbeidsbutikken AS.

Geographic Distribution of Activity

Activity in the Municipality:

• Kongsvinger is the only district/place in the municipality with activity in the children's clothing store industry.
• One company (Hjertebarn AS) and part of the activity from Arbeidsbutikken AS are registered in Kongsvinger.

Geographic Observations:

• There are no detailed data on the distribution of activity below the municipal level (e.g., specific areas or streets).
• Kongsvinger is the main hub for the industry, with two companies located in the city.

Dynamics and Stability in the Industry

Bankruptcies and Economic Challenges:

• Arbeidsbutikken AS has been in deficit and has negative economic indicators, including a negative EBITDA of -133,000 NOK in 2025 and total debt of 142,000 NOK.
• Hjertebarn AS has no reported sales or revenues, which may indicate an early stage or low activity.

Sales Dynamics:

• The industry experienced a significant increase in sales from 2019 to 2020 (+417.7%) and from 2020 to 2021 (+323.3%), but fell back to zero in 2023. In 2025, there is a mild increase of 88.1% in sales compared to 2024.
• This shows a large variation in the industry, with both significant increases and drastic declines over time.

Future Outlook for Entrepreneurs

Opportunities and Challenges:

• Market Growth: The industry experienced a significant increase in sales in 2021 and 2022, which may indicate growing demand for children's clothing in the region.
• Stable Market: In 2025, there is a mild increase in sales compared to 2024, which may indicate a gradual stabilization of the industry.
• Risk Factors: The previous drastic declines in sales (e.g., from 2022 to 2023) and the negative economic indicators for Arbeidsbutikken AS show potential risk factors for new companies.

Recommendations for Entrepreneurs:

• Analyze Market Needs: It is important to investigate local needs and competing companies before establishment.
• Financial Planning: Entrepreneurs should be prepared for potential economic challenges, such as those experienced by Arbeidsbutikken AS.
• Location: Kongsvinger is the main hub for the industry, and SmartGrunder can help entrepreneurs find suitable addresses in the municipality for the children's clothing store industry.

The children's clothing store industry in Kongsvinger is small but has shown both potential and challenges over time. With a significant increase in sales in 2021 and 2022, as well as a mild increase in 2025, the industry can be an interesting opportunity for entrepreneurs. However, the previous drastic declines and the negative economic indicators for Arbeidsbutikken AS show that it is important to be prepared for variations in the market. Entrepreneurs should conduct thorough economic analyses and investigate local market needs before establishment. Kongsvinger is the main hub for the industry, and SmartGrunder can help find suitable addresses in the municipality for the children's clothing store industry.