The Electronics Retail Industry in Senja: Current Situation and Future Outlook

The electronics retail industry in Senja is a small but dynamic sector with two registered companies. In recent years, the industry has experienced both strong growth and challenges, especially after the pandemic. There is a clear variation in sales development, with a significant increase in 2018 and 2019, followed by a decline in 2021. Workforce development has been more stable, with an increase up to 2022 before a reduction in 2023. The industry has an EBITDA margin of 3% and a gross profit of 19%, which indicates a relatively good financial health for the operating companies.

Economic Overview of the Electronics Retail Industry in Senja

The industry has a stable EBITDA margin of 3% throughout the period, even though sales and workforce numbers have varied. The largest sales growth was recorded in 2018 (+98% from 2017), while there was a significant decline in 2021 (-40.4% from 2020). Workforce development has been more gradual, with an increase up to 2022 before a reduction in 2023.

Registered Companies in the Industry

1. Myre Elektro Butikk As (Strandveien 68, Finnsnes)

• Legal Form: AS
• Founded: October 25, 1996
• Workforce: 20
• Sales: 70.3M NOK
• EBITDA: 2.5M NOK
• Gross Profit: 13.7M NOK
• EBITDA Margin: 3%

1. Power Norge As Avd Finnsnes (Skolegata 2, Finnsnes)

• Legal Form: AS
• Founded: June 26, 2017
• Workforce: 20
• Sales: 0 NOK
• EBITDA: 0 NOK
• Gross Profit: 0 NOK
• EBITDA Margin: 0%

Legal Form Statistics

• AS: 2 companies, 40 employees, 70.1M NOK operational income, 70.3M NOK sales, 6.7M NOK wages, 2.1M NOK operational profit, 2.5M NOK EBITDA, 13.7M NOK gross profit, 4.7M NOK equity, 11.7M NOK debt, 18% revenue growth, 3% EBITDA margin, 19% gross margin, 2% operational margin.

• Finnsnes: 2 companies, 40 employees, 70.1M NOK operational income, 70.3M NOK sales, 6.7M NOK wages, 2.1M NOK operational profit, 2.5M NOK EBITDA, 13.7M NOK gross profit, 4.7M NOK equity, 11.7M NOK debt, 18% revenue growth, 3% EBITDA margin, 19% gross margin, 2% operational margin.

The industry has been relatively stable in terms of bankruptcy statistics, with no bankruptcy registrations among the two companies. However, data shows that Power Norge As Avd Finnsnes has 0 NOK in sales and EBITDA, which may indicate challenges in operations. This underscores the need to analyze reasons for low activity, even though no bankruptcy has been registered. Myre Elektro Butikk As has a stable financial health with positive figures in all categories.

Future Outlook for Entrepreneurs

For entrepreneurs in the electronics retail industry in Senja, it is important to note the recent years of sales growth (especially in 2018 and 2019) and a stable EBITDA margin of 3%. This suggests that there is potential for growth, especially if one can adapt to market changes and utilize existing infrastructure. However, it is important to be aware of challenges experienced by Power Norge As, which had 0 NOK in sales. Entrepreneurs should consider focusing on efficient operations and customer satisfaction to ensure stability. It is also possible to utilize existing sites in Finnsnes, which is the most important area for the industry.

The agricultural sector in Senja has a broader structure with 8 companies, compared to the 2 companies in the electronics retail industry. Sales in the agricultural sector have been more variable, with a decline of -8.2% from 2016 to 2017, but an increase of +15.3% from 2017 to 2018. Workforce development has been more unstable, with a decline of -41.1% from 2017 to 2018. Compared to the electronics retail industry, the agricultural sector has a lower EBITDA margin, but a higher number of companies. This may indicate that the agricultural sector has a more dispersed structure, while the electronics retail industry is more concentrated. Peer companies in the agricultural sector include opticians and computer stores, which can provide a broader perspective on business models in the region.

The electronics retail industry in Senja shows potential for growth, especially with a stable EBITDA margin and a concentrated structure in Finnsnes. However, it is important to be aware of challenges experienced by Power Norge As, which had 0 NOK in sales. Entrepreneurs should consider focusing on efficient operations and customer satisfaction to ensure stability. It is also possible to utilize existing sites in Finnsnes, which is the most important area for the industry. SmartGrunder can help entrepreneurs explore addresses in Senja for this industry, with a focus on natural conditions and market prospects.