The Cosmetics Retail Industry in Lillehammer: Current Status and Future Prospects

The cosmetics retail industry in Lillehammer is showing dynamic development over recent years. Sales agreements have grown from NOK 6.0 million in 2016 to NOK 28.1 million in 2025, with a significant increase of +146.4% from 2023 to 2024. This indicates a significant improvement following a sharp decline of -41.1% in 2023. Employment development has been more volatile, with a current total of 19 employees in 2026, which is lower than the peak of 26 employees in 2021.

Key figures from 2025:

• Sales: NOK 28.1 million
• Employees: 19
• EBITDA margin: 12%
• Gross margin: 2695%
• Operating margin: 7%

The extremely high gross margin (2695%) indicates that stores operate with low costs relative to sales revenue, which may be due to high pricing or efficient business operations. The EBITDA margin of 12% shows a good operating result, although it is lower than the industry average in other regions.

In Lillehammer, there are 9 companies in the cosmetics retail industry. The most important company forms are AS (2 companies) and ENK (7 companies). The most notable companies are:

Interesting observations:

• Rituals Cosmetics is the only active AS with significant sales and profit.
• Most ENK companies have no reported sales or profit, which may indicate that they are newly established or not actively operating.
• There are no bankruptcy registrations among companies in the industry.

Cosmetics retail activity in Lillehammer is concentrated mainly in the city center. The key locations are:

Important addresses:

• Strandpromenaden 85 (Rituals Cosmetics)
• Storgata 73 (Kicks Norge)
• Gabbrostien 37 (Aloe Vera)

There are no significant activities outside Lillehammer city center, even though companies are registered in Fåberg. This indicates that stores are concentrated in central areas with high population density and tourist activity.

The industry has been marked by significant fluctuations over the years:

Sales development:

• Largest growth: +146.4% from 2023 to 2024
• Largest decline: -41.1% in 2023
• Average annual growth: +16.7% from 2016 to 2025

Employee development:

• Largest growth: +19.0% from 2019 to 2020
• Largest decline: -23.1% from 2021 to 2022
• Average annual growth: +2.9% from 2016 to 2025

Bankruptcies:

• No bankruptcies registered among companies in the industry.
• Several companies have 0 sales and 0 employees, which may indicate that they are newly established or not actively operating.

The cosmetics retail industry in Lillehammer shows potential for growth, especially after the strong increase in 2024. The key figures indicate that:

• High operating margin: An EBITDA margin of 12% and a gross margin of 2695% suggest that the industry can be profitable for new players.
• Stable employee numbers: Despite fluctuations, the industry has maintained an employee count of around 19 over the past five years.
• Low bankruptcy risk: No bankruptcies registered, indicating that the industry is stable.

Possible challenges:

• Most companies have low or no sales, which may indicate competitiveness or lack of market share.
• Most companies are ENK-form, which may indicate small, individual owners with limited capital.

Opportunities for entrepreneurs:

• High gross margin and stable employee numbers can be attractive for new players.
• Central locations in Lillehammer city can provide access to tourists and local customers.
• SmartGrunder can help entrepreneurs find suitable locations in Lillehammer for cosmetics retail activities.

The cosmetics retail industry in Lillehammer shows both opportunities and challenges. With a high gross margin and stable employee numbers, the industry can be profitable for new players. However, it is important to note the significant fluctuations in sales and employee numbers over the years. Rituals Cosmetics is the most notable player with significant sales and profit. Entrepreneurs should consider establishing themselves in central locations in Lillehammer, where there is high population density and tourist activity. SmartGrunder can help with finding suitable locations and analyzing market conditions in the municipality.

The cosmetics retail industry in Lillehammer has grown from NOK 6.0 million in 2016 to NOK 28.1 million in 2025. There are 9 registered companies, of which 2 are AS and 7 are ENK. Rituals Cosmetics is the most notable player with sales of NOK 15.2 million and 12 employees. The industry has a high gross margin (2695%) and EBITDA margin (12%), but has been marked by significant fluctuations in sales and employee numbers. There are no bankruptcies registered, indicating that the industry is stable. Entrepreneurs should consider establishing themselves in central locations in Lillehammer, where there is high population density and tourist activity.