The Cosmetics Retail Industry in Ålesund: Current Status and Future Outlook

The cosmetics retail industry in Ålesund shows a mix of stability and variation. There are a total of 17 companies registered in the municipality, of which 5 are actively operating AS companies with a combined total of 49 employees. The most prominent companies are Rituals Cosmetics Norway AS, Kicks Norge AS, and Skin Tonic Ålesund AS. The industry experienced significant growth from 2018 to 2019, but also faced a decline in 2023 before a partial recovery in 2024. Economic indicators show high gross profit (2560%) and operating margin (7%), but variation in EBITDA margins and sales growth.

Economic Trends

• Sales Growth: The industry experienced extreme growth of +220.9% from 2017 to 2018, followed by a further increase of +149.4% from 2018 to 2019. This was followed by a decline of -14.9% in 2020 and a drastic drop of -56.1% in 2023. In 2024, a strong recovery of +145.3% was recorded.
• Employees: The number of employees stabilized around 44-47 during the period 2024-2026, after a decline from 59 in 2019.
• Economic Indicators: Rituals Cosmetics Norway AS has a high EBITDA margin of 12% and an operating margin of 7%, while other companies such as Kicks Norge AS show zero value in several economic categories.

Active Companies

• Rituals Cosmetics Norway AS (Langelandsvegen 25): AS entity, 19 employees, operates with sales of NOK 16.0M and EBITDA of NOK 2.0M.
• Kicks Norge AS (multiple branches): AS entity, total of 31 employees, but shows zero sales and operational income in some branches.
• Skin Tonic Ålesund AS: AS entity, 8 employees, but no activity in economic categories.
• ENK entities: 13 companies are registered as ENK (sole proprietorships), but most have 0 employees and no activity. Examples include Algo Beauty By Malinovska (Skodje) and Bodil Yksnøy (Ørskog).

Geographic Distribution

• Ålesund: The capital of the industry with 5 companies and 49 employees. The most significant companies are located in central areas such as Langelandsvegen and Kipervikgata.
• Other Municipalities: ENK entities are spread to neighboring municipalities such as Skodje, Ørskog, Vatne, and Brattvåg, but these have no activity in sales or employees. Examples include Goga Wellness Arne Liljevold (Vatne) and Ingrun Gudbrandsen (Brattvåg).

Operational Dynamics

• Bankruptcies: None of the 17 companies are registered as bankrupt, indicating a relative stabilization in the industry.
• Inactivity: Several companies, especially ENK entities, show no activity in sales, employees, or operational income. This may indicate either inactivity or newly established companies without current operations.
• Stability: Rituals Cosmetics Norway AS has shown consistent operations and economic activity, while other companies such as Kicks Norge AS have variable levels of activity.

Future Outlook

• Opportunities: High gross profit (2560%) and stabilization in the number of employees (44-47) indicate potential for growth in existing companies. Rituals Cosmetics Norway AS can serve as a reference for new entrants.
• Outside: ENK entities in neighboring municipalities may represent underutilized markets, especially if activated through local adaptation.
• Outside: Larger companies such as Rituals may offer opportunities for collaboration or supply, while small ENK entities may be challenging due to lack of operations.
• Recommendation: Entrepreneurs should consider focusing on existing operational models and locating in Ålesund to leverage infrastructure and existing customers.

The cosmetics retail industry in Ålesund shows a mix of stability and variation. With 17 companies and a high gross profit, there is potential for growth, especially in existing companies such as Rituals Cosmetics Norway AS. At the same time, ENK entities in neighboring municipalities show opportunities for development, even though they are currently inactive. Entrepreneurs should consider focusing on Ålesund to leverage existing operational models and infrastructure, while also being aware of the challenges in a more fragmented market structure.