Clothing Retail in Kragerø: Industry Analysis and Development Trends

Clothing retail in Kragerø is a moderate-sized industry with 19 registered companies in the municipality. In recent years, the industry has been marked by fluctuations in sales and number of employees, with a peak in 2021 and a decline in 2023. There are 9 AS companies and 7 ENK companies, and the most active companies have higher sales and profit margins. The industry has potential, but there are challenges related to competition and economic fluctuations.

Sales for clothing retail in Kragerø increased by 21% from 2019 to 2020, but have since been on a downward trend with an 8.1% decline from 2024 to 2025. The number of employees has fluctuated between 57 and 73 over the past few years. The most profitable companies have EBITDA margins of up to 17%, while some companies have negative EBITDA values. The industry has a high average gross margin of 44%, but there is significant variation between companies.

There are 16 registered companies in clothing retail in Kragerø, with 9 AS companies and 7 ENK companies. The most well-known companies include Classique As (23 employees, 13.4 million NOK in sales), Paa Hjørnet As (14 employees, 5.6 million NOK in sales), and Cubus Sannidal Avd 851 (8 employees, 10.1 million NOK in sales). Some companies have 0 employees or 0 sales, such as He Butikk As and Badeungen As. Most companies are not in liquidation, but some have negative EBITDA values.

Clothing retail activity is most concentrated in Kragerø, with 6 companies, 65 employees, and 30.4 million NOK in sales. Sannidal has 2 companies, 13 employees, and 13.7 million NOK in sales, while Helle has 1 company, 4 employees, and 6.2 million NOK in sales. Kragerø has higher average sales and employees per company compared to Sannidal and Helle.

There are no companies in liquidation in clothing retail in Kragerø. However, data shows that some companies have negative EBITDA values, such as Zavanna Alti Kragerø Avd 581 (-11% EBITDA margin) and Vestøl Herre Og Ungdomsklær As (1% EBITDA margin). There are also companies with 0 sales and 0 employees, such as He Butikk As and Badeungen As. New companies such as Hihn 2e and Julie Josephine As were established in 2021 and 2023, but have not yet started operations.

For entrepreneurs, clothing retail in Kragerø is an industry with potential, especially in a tourist town like Kragerø. However, there are challenges related to competition and fluctuating sales. Companies with high average sales and profit margins may benefit from leveraging local tourism and cultural activities. Entrepreneurs should also be aware of economic fluctuations and competition from both local and national players.

The broader industry of creative, arts, and entertainment activities in Kragerø has 31 companies, more than the 19 companies in clothing retail. Sales for the broader industry increased by 18.6% from 2019 to 2020, but have since been on a downward trend. Peer companies in the broader industry include Eurosko Volum (shoe store, 12 million NOK in sales) and Dahlia As (knitting store, 0 NOK in sales). The broader industry has a somewhat more stable development compared to clothing retail, but both industries face challenges with fluctuating sales and competition.

Clothing retail in Kragerø has both opportunities and challenges. The industry has potential in a tourist town, but there are fluctuations in sales and competition from both local and national players. Entrepreneurs should consider leveraging local tourism and cultural activities, while also being mindful of economic fluctuations. SmartGrunder can help entrepreneurs find suitable addresses in Kragerø for clothing retail, based on natural conditions and local circumstances.