The Electronics Retail Industry in Arendal: Current Status and Future Prospects

The electronics retail industry in Arendal has shown a mix of stability and variation in recent years. According to data from 2025, there are four registered companies in the industry, with a total of 70 employees and annual revenues exceeding 339 million Norwegian kroner. The main companies are Elkjøp Arendal, Power Norge As Avd Arendal, and Byklum Retail As, which together constitute a significant portion of the market. The industry has experienced both growth and declines in sales and employee numbers, with a marked decline in 2025. This indicates that the industry is influenced by external factors, and it is important to closely monitor developments to identify potential opportunities and challenges for new players.

Economic data shows that sales in the electronics retail industry in Arendal have grown from 259 million Norwegian kroner in 2016 to a peak of 346 million Norwegian kroner in 2023, before declining to 328 million Norwegian kroner in 2025. The number of employees has varied between 68 and 81 over the years, with a decrease of 9.3% from 2024 to 2025. The EBITDA margin has remained around 1%, indicating weak profitability relative to costs. The industry therefore has a weak economic position, despite a stable presence in the market.

The following companies are registered in the electronics retail industry in Arendal:

• Elkjøp Arendal (Sagvannsveien 60): 36 employees, annual revenue of 214.6 million Norwegian kroner, EBITDA of 2.5 million Norwegian kroner.
• Power Norge As Avd Arendal (Sagvannsveien 5): 34 employees, annual revenue of 124.9 million Norwegian kroner, EBITDA of 3.0 million Norwegian kroner.
• Byklum Retail As (Sagvannsveien 44): 0 employees, annual revenue of 20.6 million Norwegian kroner, EBITDA of -0.848 million Norwegian kroner.
• Skousen Arendal (Sagvannsveien 44): 0 employees, no revenue or EBITDA.

Most companies are organized as AS, and none of them are registered as bankrupt. Nevertheless, Byklum Retail As shows a negative EBITDA, which may indicate economic challenges.

All four companies in the electronics retail industry in Arendal are located in Arendal, with a clear concentration on Sagvannsveien. This area appears to be an important commercial hub in the municipality, with several electronics retailers and adjacent businesses. The geographic concentration can be an advantage for customers, but also a challenge for new players who must compete for space and attention in an already established market.

The industry has shown itself to be relatively stable in terms of bankruptcy, with none of the registered companies being bankrupt. Nevertheless, Byklum Retail As shows a negative EBITDA, which may indicate economic challenges. This shows that although the industry has not experienced major bankruptcies, some companies may have greater difficulty maintaining profitability. It is therefore important for new players to carefully analyze the market and ensure a stable economic position.

For entrepreneurs considering starting an electronics retail business in Arendal, it is important to be aware of both the opportunities and challenges. The industry has shown growth in sales up to 2023, but there has been a decline in 2025, which may indicate market changes or economic pressures. It is also important to be aware of the competitive market position, with already established companies such as Elkjøp and Power Norge. A good location in Arendal, especially on Sagvannsveien, can be an advantage, but it is necessary to ensure a unique differentiation to compete effectively.

When comparing the electronics retail industry with the broader agricultural sector in Arendal, data shows that agriculture has a higher number of companies (25) and higher sales (525 million Norwegian kroner in 2023) compared to the electronics retail industry. Nevertheless, agriculture has a lower number of employees (160 in 2023) and a more stable development in sales. This shows that agriculture is a more stable and broader industry in the municipality, while the electronics retail industry is more specialized and may be more vulnerable to market fluctuations. For entrepreneurs, this can be an important consideration to understand how the electronics retail industry positions itself within the local ecosystem.

The electronics retail industry in Arendal has shown both growth and challenges in recent years. With four registered companies and a stable presence in the market, it is possible to identify opportunities for new players looking to establish themselves in the municipality. Nevertheless, it is important to be aware of the economic challenges, such as negative EBITDA at some companies and a decline in sales in 2025. A good location in Arendal, especially on Sagvannsveien, can be an advantage, but it is necessary to ensure a unique differentiation to compete effectively. SmartGrunder can help entrepreneurs analyze potential locations and develop strategies that fit local conditions.