After Newbie UK rollout, Kappahl Group expands to Iceland

Expanding Nordic fashion firm Kappahl Group is to open eight signature stores and one Newbie kidswear store in Iceland with the venture marking its first franchised operation with partner LKA 19.

“Icelandic customers have long asked for our strong brands, and now that we’ve found a fantastic partner, the timing is perfect to enter the Icelandic market,” said Kappahl Group CEO Elisabeth Peregi, explaining the ambitious expansion into the small (400,000 population) country that also comes with major tourist numbers (2.25 million visitors last year).

She said the expansion into exploring the franchise concept “feels extra exciting to do this with such a well-established and skilled partner as LKA 19.”

The openings are planned for spring 2027 with the stores fully operated by LKA 19, with all staff employed by the franchise partner. LKA 19 will also manage the e-commerce sites Kappahl.is and Newbie.is.

LKA 19, which also operates franchises for Mango and Swedish fashion chain Gina Tricot in Iceland, noted plenty of demand for Kappahl and Newbie’s “strong” brand awareness  in the country. It added: “We have admired [both brands] for many years — not only for their Scandinavian design and quality, but for their values, sustainability leadership, and genuine respect for families and co-workers.”