The Health Food Store Industry in Sandnes: Current Status and Future Outlook

The health food store industry in Sandnes is a small but dynamic sector with four registered companies. In recent years, the industry has shown a mix of growth and variations in operating results, with an average EBITDA margin of 8% and a high gross profit margin of 2128%. The key players are Life Foodstore and Sunkost Butikk, which operate in multiple locations within the municipality. The industry has been stable, with no bankruptcies among the reported companies, indicating a relatively secure business model.

Economic trends

• Sales: The industry achieved a sales growth of 31% from 2019 to 2020, reaching a peak of NOK 13.1 million in 2023 before declining to NOK 11.6 million in 2025.
• Employees: The number of employees grew from 8 to 18 between 2016–2023, but has since stabilized at 15 employees.
• EBITDA: Average EBITDA margin of 8%, with a high gross profit margin of 2128%.

Operating results

• The four companies have a combined operating profit of NOK 1.1 million and a combined equity of NOK 1.1 million. They have an average operating profit per employee of NOK 1.2 million.

Registered companies

1. Life Foodstore Amfi Kvadrat (Gamle Stokkavei 1) – AS, founded in 2015, 7 employees, operating profit NOK 577,600.
2. Sunkost Butikk As (Kvadrat Senter) – AS, founded in 2006, 5 employees, no operating result.
3. Life Foodstore Amfi Vågen (Elvegata 11) – AS, founded in 1999, 0 employees, operating profit NOK 220,100.
4. Life Foodstore Amfi Vågen (Amfi Vågen) – ENK, founded in 2008, 0 employees, no operating result.

Organizational forms

• AS (2 companies, 12 employees) accounts for 100% of the reported companies. They have an average operating profit per employee of NOK 1.3 million.

Geographic distribution

• Sandnes (1 location) has 2 companies and 12 employees. The key addresses are:
• Gamle Stokkavei 1 (2 companies)
• Elvegata 11 (1 company)

Location analysis

• Most companies are concentrated in the Kvadrat area and Elvegata 11, which are central locations in Sandnes. This suggests a strategy to maximize accessibility and customer attraction.

• Bankruptcies: None of the reported companies are bankrupt, indicating a stable business model.
• Operational variations: Sunkost Butikk has no operating result, while Life Foodstore has a stable operating profit of over NOK 500,000. This may be due to different operational strategies or market share.

Employees and growth

• The number of employees has varied between 0 and 7, with an average growth of 20% in periods. This may be a consequence of company structure and operational needs.

Outlook for entrepreneurs

• Growth potential: The industry has shown growth in sales and operating profit, with a high EBITDA margin of 8%. This suggests there is room for further development.
• Stability: No bankruptcies and a stable business model make the industry an attractive choice for entrepreneurs.
• Challenges: A decline in sales from 2023 to 2025 (11.1%) may be a challenge, but a high gross profit margin (2128%) provides room for operational adjustments.

Recommendation

Entrepreneurs should consider developing existing stores or establishing new ones with a focus on customer satisfaction and operational efficiency.

Services sector in Sandnes

• Number of companies: 149 companies in the services sector, compared to 4 in the health food store industry.
• Sales: The services sector had a sales volume of NOK 2.85 billion in 2024, compared to NOK 11.6 million for the health food store industry.
• Employees: The services sector had 1,182 employees in 2024, compared to 15 in the health food store industry.

Peer companies

• Mega Brueland Avd 130 (NOK 195.5 million in sales, 60 employees)
• Coop Økonom Sa Avd Obs Kvadrat (NOK 205.1 million in sales, 60 employees)
• Extra Smeaheia Avd 164 (NOK 78.2 million in sales, 21 employees)

Conclusion

The services sector has a much higher volume and number of companies, but the health food store industry has a higher EBITDA margin (8% vs. average in the services sector). This suggests that the health food store industry could be an attractive part of the services sector for entrepreneurs.

The health food store industry in Sandnes shows potential for growth and stability, with a high EBITDA margin and no bankruptcies. The registered companies have a solid operational structure, and there is room for development of existing stores or establishment of new ones. Entrepreneurs should consider leveraging the stable market position and high gross profit margin. SmartGrunder can help find suitable locations and strategies to develop a profitable health food store in Sandnes.