Kappahl Group expands to Iceland – opening nine stores via franchise

In spring 2026, Kappahl Group will open eight Kappahl stores and one Newbie store in Iceland. <em>“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,”</em> says Elisabeth Peregi, CEO of Kappahl Group.


January 14, 2026, 09:00 UTC

This expansion marks the first time Kappahl Group explores the franchise concept. “It feels extra exciting to do this with such a well-established and skilled partner as LKA 19,” continues Peregi.

Preparations for the new stores have started - eight Kappahl stores and one Newbie store will open through the Icelandic franchise partner LKA 19 - with openings planned for Spring next year.

“This establishment is part of our growth strategy to strengthen our presence in the Nordic market. Customers will be able to shop both in the new stores and online, as we will launch e-commerce in Iceland at the same time, with two sites: Newbie.is and Kappahl.is,” says Peregi.

LKA 19 confirms the strong demand for Kappahl and Newbie in Iceland:
“We have admired Kappahl and Newbie 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. To be chosen as Kappahl Group’s very first Master Franchise partner globally is an honour beyond words. We are incredibly proud to begin this new chapter and cannot wait to welcome our fantastic Icelandic customers into the Kappahl and Newbie universe,” say franchise owners Albert Þór Magnússon and Lóa Dagbjört Kristjánsdóttir.

The stores will be 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.

About LKA 19
LKA 19 is a family-owned franchise company led by Albert Þór Magnússon and Lóa Dagbjört Kristjánsdóttir. With deep experience in international retail, they also operate franchises for Gina Tricot and Mango in Iceland. With a strong focus on customer experience, high retail standards, and innovative concepts, Albert and Lóa — together with their team of over 160 employees — have played a central role in shaping modern fashion retail in Iceland.

For more information, please contact:

Kappahl Group: Johanna Flemström, Communication Manager
+46 729-974649
johanna.flemstrom@kappahl.com

LKA 19: Albert Þór Magnússon, CEO
+354 691-3101
albert.magnusson@gmail.com

Lóa Dagbjört Kristjánsdóttir
+354 771-7493.
loadagbjort@gmail.com

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