The Clothing Store Industry in Sogndal: Current Status and Outlook

Overview of the Clothing Store Industry in Sogndal

The clothing store industry in Sogndal consists of 13 companies with a total of 59 employees in 2026. The industry has been marked by declining sales figures, with a sharp decline of 44.9% from 2024 to 2025. At the same time, wage statistics show a gradual decline in the number of employees over the past few years. The industry is part of the broader creative, arts, and entertainment activities sector, which has 22 companies in the municipality – an indication that clothing stores are a smaller part of this sector.

Sales and Employee Development:

Sales figures have been declining over the past few years, with a sharp decline of 44.9% from 2024 to 2025. The number of employees has also shown a decline, from 131 in 2016 to 59 in 2026. The industry, however, has a high gross profit (5530% in Sogndal) and an operating profit of 4%, indicating that many companies have good margins.

Average figures per employee:

• Sales per employee: 1.3M NOK
• EBITDA per employee: 75.1K NOK

The following companies are registered in the clothing store industry in Sogndal:

1. H & M Hennes & Mauritz As – 20 employees, operating income 23.9M NOK
2. Nessane Industribygg As – 10 employees, operating income 4.0M NOK
3. Kidsplanet As – 9 employees, operating income 6.6M NOK
4. Sogn Mote As – 9 employees, operating income 11.0M NOK
5. Cubus Thon Senter Sogningen Avd 929 – 7 employees, operating income 17.7M NOK

Organizational form:

• AS (6 companies) is the most common organizational form in the industry, with a total of 56 employees and operating income of 63.3M NOK.

Special observations:

• Phrase As has negative EBITDA (-57.0K NOK) and no sales in 2025.
• Arbeidskle As and Bik Bok Thon Senter Sogningen Avd J24 have 0 employees and no sales in 2025.

Clothing store activity in Sogndal is most concentrated in the following areas:

1. Sogndal (5 companies, 46 employees):

• Operating income: 59.3M NOK
• Sales: 59.3M NOK
• EBITDA: 3.4M NOK

1. Balestrand (1 company, 10 employees):

• Operating income: 4.0M NOK
• Sales: 606.0K NOK
• EBITDA: 1.5M NOK

Contrast: Sogndal has five times more companies and 4.6 times more employees than Balestrand, but Balestrand has a higher EBITDA margin (36% vs. 5% in Sogndal).

Bankruptcies and Financial Challenges:

• No bankruptcies have been registered in the industry in Sogndal in recent years.
• Phrase As has negative EBITDA (-57.0K NOK) and no sales in 2025, indicating potential financial challenges.

Sales Development:

• Sales figures have been declining over the past few years, with a sharp decline of 44.9% from 2024 to 2025. This may be due to economic pressure or competitiveness.
• Nessane Industribygg As had an extraordinary sales increase of 42% in 2025, which may be a unique case.

Outlook for Entrepreneurs

Critical Points:

• Sales figures have been sharply declining (44.9% from 2024 to 2025), indicating a weak market position.
• Low number of employees (59 in 2026) and high operating costs (e.g., 1.2M NOK in wages for 10 employees at Nessane Industribygg As) can be challenges for new companies.

Opportunities:

• High margins (gross profit of 5530% in Sogndal) can provide room for growth.
• Local conditions in Sogndal, such as tourist attractions, can provide unique opportunities for clothing stores with a local focus.

Recommendation: Entrepreneurs should consider differentiating themselves through unique product offerings or services, while also being mindful of operating costs and market development.

Creative, Arts, and Entertainment Activities Sector in Sogndal:

• Has 22 companies in the municipality, indicating that clothing stores are a smaller part of this sector.
• Sales figures have also been declining (44.9% from 2024 to 2025), but with a less sharp decline than in clothing stores.
• Wage development shows a gradual decline, but with stabilization in 2026 (89 employees).

Peer companies in the sector:

• Euro Sko Sogningen (shoe store) has positive EBITDA (734.2K NOK) and sales of 13.3M NOK.
• Balestrand Antikk Wolfram Esch (second-hand store) has 0 employees and 0 sales, indicating potential challenges in this part of the sector.

Conclusion: The broader sector has a more stable development than clothing stores, which can provide entrepreneurs in the clothing industry with opportunities to leverage collaboration or socio-economic conditions within the sector.

The clothing store industry in Sogndal has shown weak development over the past few years, with a sharp decline in sales and the number of employees. This may be due to both economic pressure and competitiveness. At the same time, the broader creative, arts, and entertainment activities sector shows a more stable development, which can provide entrepreneurs with opportunities to leverage collaboration or local conditions. Entrepreneurs should consider differentiating themselves through unique product offerings or services, while also being mindful of operating costs and market development. SmartGrunder can help entrepreneurs find suitable locations in Sogndal for clothing stores, based on local conditions and market outlooks.