The Clothing Store Industry in Arendal: Current Status and Future Perspectives

Overview of the Clothing Store Industry in Arendal

The clothing store industry in Arendal consists of 55 registered companies, but only 16 of these are listed with detailed financial data. The industry has been marked by a rising decline in sales over recent years, with a significant reduction of 35.7% in 2025 compared to 2024. Employment has also continuously decreased, with a total decline of 21.4% from 2016 to 2026. A single clothing store in Saltrød has gone bankrupt, highlighting economic challenges in the industry. Although there are some companies with high EBITDA margins (e.g., Kappahl with 11%), there are also companies with negative results (e.g., Bik Bok with -5% EBITDA margin).

Economic Development

Sales and employees in the clothing store industry in Arendal have shown a clear decline over time:

Average EBITDA margins stand at 7%, but the variation is large. The most profitable companies have EBITDA margins up to 21% (e.g., Match Harebakken), while others have negative values. There is also a clear economic spread between companies, with some having high debt (e.g., Bik Bok with 724.4 K NOK debt) and others with high equity (e.g., Gina Tricot with 275.3 K NOK equity).

Companies in the Industry

16 companies are listed with detailed data, including well-known names such as:

• H&M Hennes & Mauritz As (26 employees, 1.7 M NOK EBITDA)
• Lindex As (9 employees, 377.3 K NOK EBITDA)
• Kappahl As (10 employees, 1.9 M NOK EBITDA)

Most companies are organized as AS (32 companies), and there is a clear focus on commercial stores in Arendal. Some companies have zero sales and employees (e.g., Bik Bok and Cubus Harebakken), which may indicate temporary closures or financial challenges. A single company, Han & Henne As, has gone bankrupt with an EBITDA of -54.0 K NOK.

Geographic Distribution

Arendal is the hub for the clothing store industry, with 31 companies and 219 employees. Færvik has one company with two employees, but with lower EBITDA margins (0%) and lower sales (2.7 M NOK). There is a clear concentration of activity in Arendal, especially in areas such as Vesterveien 4 and Langsæveien 5, where many well-known companies have stores. This indicates that Arendal has a stronger infrastructure and customer base for clothing stores compared to Færvik.

Dynamics and Bankruptcy Statistics

One bankruptcy has been registered in the industry: Han & Henne As in Saltrød, with an EBITDA of -54.0 K NOK and no employees. This shows that there are some companies facing economic challenges, even though most companies in the industry have positive EBITDA. There are also companies with negative results, such as Bik Bok (EBITDA -268.6 K NOK) and Change Of Scandinavia (EBITDA 205.9 K NOK). However, there are no clear signs of a broad decline in the industry, even though some companies are facing challenges.

For entrepreneurs in the clothing store industry in Arendal, there are both challenges and opportunities. This industry has been marked by a rising decline in sales over recent years, with a significant reduction of 35.7% in 2025. This may be due to economic pressure, bankruptcy, and a weaker customer base. However, there are greater opportunities in Arendal, which has a strong infrastructure and cultural activity that can support clothing stores. Entrepreneurs should focus on differentiation, digital presence, and local cooperation to ensure success in this industry.

Creative, art, and entertainment activities are a broader industry that includes clothing stores, but also other sectors such as knitting shops and second-hand stores. This industry has 87 companies in Arendal, with 329 employees in 2024. Sales have also been declining, but with a less severe reduction compared to clothing stores. Peer companies in this industry include:

• Norsk Flid Husfliden Arendal As (12.1 M NOK sales, 1.6 M NOK EBITDA)
• Mørland Sko As Avd Skoringen (16.4 M NOK sales, 842.7 K NOK EBITDA)

These companies have higher EBITDA margins compared to clothing stores, showing that creative and entertainment activities can be more profitable in Arendal. Entrepreneurs should therefore consider focusing on creative and entertainment activities to maximize profitability.

Conclusion

The clothing store industry in Arendal has been marked by rising decline in sales and employees, with a significant reduction of 35.7% in 2025. There is also one bankruptcy and companies with negative EBITDA, showing economic challenges. However, there are opportunities in Arendal, which has a strong infrastructure and cultural activity that can support clothing stores. Entrepreneurs should focus on differentiation, digital presence, and local cooperation to ensure success in this industry. SmartGrunder can help entrepreneurs find optimal addresses in Arendal for clothing stores, based on market trends and local conditions.