The Clothing Retail Industry in Sandnes: Current Status and Future Prospects

The clothing retail industry in Sandnes is an important part of the municipality's economy, with over 100 registered companies and nearly 580 employees. The industry has shown both strength and instability over time, with a significant sales decline in 2025. Nevertheless, there are established players such as H&M, Lindex, and Dressmann that contribute to the industry's structure. One single clothing store has gone bankrupt, highlighting both challenges and opportunities for new entrants. The industry is most active in Sandnes city center, with less activity in Hommersåk.

The industry has experienced a complex economic development in recent years. The profit margin increased by 10.1% from 2023 to 2024, but fell by 44.8% in 2025. Employees have shown a more stable development, with an increase of 11.1% from 2022 to 2023, followed by a decline of 2.7% in 2025. This shows that the industry has both potential and vulnerability, especially in connection with market fluctuations.

In Sandnes, we find 16 registered clothing stores, including major names such as H&M, Lindex, and Dressmann. Most companies are organized as AS, with a dominant approach. Among the notable companies are Lærke Sandnes AS and Zettabeth Kvadrat AS, which have reported zero sales and employees. This shows that the industry also includes companies in earlier stages or facing challenges.

Clothing retail activity is most concentrated in Sandnes, with 61 companies and 585 employees. Hommersåk has a smaller, but more dispersed activity with 2 companies and 11 employees. Sandnes has a higher sales volume (NOK 628.4 million) compared to Hommersåk (NOK 21.3 million), but Hommersåk shows a higher sales growth (25%) compared to Sandnes (6%).

The industry has experienced a bankruptcy in 2025, with Vingenza By Frati AS as the one company that has gone bankrupt. This shows that the industry is not immune to economic challenges. Nevertheless, most companies have shown positive development, with EBITDA margins ranging from 2% to 3364%, showing significant variation in operating results between companies.

For entrepreneurs considering starting a clothing store in Sandnes, the data show that the industry has both opportunities and challenges. The high bankruptcy rate and the dramatic sales decline in 2025 indicate potential risk factors. Nevertheless, established players can provide inspiration, and there are opportunities in Hommersåk, which has shown higher sales growth. A good understanding of market needs and operational strategy is crucial for success.

Compared to the broader creative, arts, and entertainment activities sector, the clothing retail industry has a smaller sales development (NOK 635.1 million in 2024) compared to the overall sector (NOK 927.6 million in 2024). Nevertheless, the clothing retail industry has a higher number of employees (566 in 2025) compared to the overall sector (801 in 2025). Peer companies such as R:elsk Ombrukssenter and Embla Bunader Kvadrat AS show that there is variation in the industry, with both large and small companies.

The clothing retail industry in Sandnes has both strengths and challenges. With established players and a certain market-oriented activity, there are opportunities for new entrants who wish to participate. Nevertheless, it is important to be aware of the economic vulnerabilities and bankruptcy rate. SmartGrunder can help entrepreneurs find suitable locations and strategies to succeed in this industry.