The Bicycle Shop Industry in Ringerike: Current Status and Outlook

Overview of the Bicycle Shop Industry in Ringerike

The bicycle shop industry in Ringerike is a small but dynamic sector with a single company: Glade Hjul Sykkel Og Skieksperten As in Hønefoss. The industry has experienced both growth and decline in recent years, with a significant reduction in the number of employees and sales revenue after 2022. At the same time, data shows that the industry has a high average gross profit (27%), but low operating profit (0%). This indicates that operating costs and competitive pressure have affected profitability.

Key Figures:

• Number of companies: 1
• Number of employees (2025): 5
• Sales revenue (2025): NOK 14.6 million
• EBITDA margin: 0%
• Average gross profit: 27%

Sales Development (2016–2025):

• Largest growth: +34.5% from 2019 to 2020 (equivalent to NOK 17.1 million)
• Largest decline: -20.4% from 2022 to 2023 (equivalent to NOK 14.9 million)
• Average annual growth: +1.5% (2016–2022)

Employee Development (2016–2025):

• Largest growth: +8.1% from 2021 to 2022 (from 15 to 15 employees)
• Largest decline: -54.5% from 2023 to 2024 (from 11 to 5 employees)
• Average annual decline: -4.3% (2022–2025)

Critical Point: Sales revenue and number of employees have fallen by over 20% since 2022, while the operating result has been negative (NOK -5,000) in 2023.

Glade Hjul Sykkel Og Skieksperten As is the only company in the industry in Ringerike. The company was founded in 2012 and has the following key figures:

Note: The company has not been bankrupt, but has experienced a significant decline in operating results and number of employees since 2022.

Hønefoss is the only city in Ringerike with activity in the bicycle shop industry:

Conclusion: Hønefoss is individually the most important center for the bicycle shop industry in Ringerike, but with a small market share compared to other cities in the Viken county.

Bankruptcies and Operational Risk:

• No bankruptcies registered in the industry in Ringerike (2016–2025)
• Negative operating result: NOK -5,000 in 2023, even though gross profit was 27%
• EBITDA margin: 0% in 2025, compared to 0.14% in 2022

Employee Development:

• Largest decline: -54.5% from 2023 to 2024 (from 11 to 5 employees)
• Largest growth: +7.1% from 2018 to 2019 (from 14 to 15 employees)

Conclusion: The industry has been marked by unstable operating results and a sharp decline in the number of employees after 2022, which may indicate increased operating costs or competitive pressure.

Outlook for Entrepreneurs

Critical Challenges:

• Low operating result: EBITDA margin of 0% in 2025, compared to 0.14% in 2022
• Reduced number of employees: From 15 to 5 employees from 2022 to 2025
• Greater competitive pressure: Sales revenue has fallen by 20.4% from 2022 to 2023

Potential Opportunities:

• High gross profit: 27%, which can provide room for operational improvements
• Stable market: Only one company in Ringerike, which can provide a market-dominating position
• Municipal support opportunities: Ringerike has an active business supplier sector with 15 companies, which can provide collaboration opportunities

Recommendation: Entrepreneurs should consider combining a bicycle shop with other services (e.g., repair, rental) to increase operating results and competitiveness.

Business Supplier Sector in Ringerike (2016–2025):

• Number of companies: 15
• Sales Revenue: NOK 93.0 million (2016) → NOK 58.6 million (2025)
• Number of Employees: 137 (2016) → 128 (2025)
• Average annual growth: -4.8% (2021–2025)

Comparison with the Bicycle Shop Industry:

• Larger sector: The business supplier sector has 15 companies, compared to 1 in the bicycle shop industry
• Higher sales revenue: NOK 93.0 million (2016) in the business supplier sector, compared to NOK 12.7 million in the bicycle shop industry
• Lower operating result: The business supplier sector has an average EBITDA margin of 4.3%, compared to 0% in the bicycle shop industry

Peer Companies in the Business Supplier Sector:

• Kremmertorvet Sport Og Fritid As: NOK 12.7 million in sales revenue, 4 employees
• Fossen Friluft As: NOK 9.6 million in sales revenue, 35 employees
• Sandberg Hønefoss As: NOK 22.1 million in sales revenue, 16 employees
• **Many companies have zero sales revenue or EBITDA (e.g., Gress Service 90 As, Golfservice 90 As, Gs90as As, Humanfuel As, Kringen Invest As, Kringen Services As, Sport 1 Kuben As, Sport Outlet Hønefoss, Xxl Sport & Villmark As Avd Hønefoss).

The bicycle shop industry in Ringerike is a small but dynamic sector with a single company: Glade Hjul Sykkel Og Skieksperten As. The industry has experienced both growth and decline in recent years, with a significant reduction in the number of employees and sales revenue after 2022. At the same time, data shows that the industry has a high average gross profit (27%), but low operating profit (0%). This indicates that operating costs and competitive pressure have affected profitability.

Recommendation for Entrepreneurs:

• Consider combining a bicycle shop with other services (e.g., repair, rental) to increase operating results and competitiveness
• Develop collaborations with other companies in the business supplier sector in Ringerike
• Consider using SmartGrunder to find optimal locations in Ringerike for a bicycle shop with potential expansions