The Handknitting Association of Iceland founded in November 1977 by hundreds of Icelanders mostly women who had supported their homes income by knitting pullovers, sweaters and other things from the very special wool from Icelandic sheep. By founding the Association, the knitters took the sale of their goods in own hands.

From the beginning, the association has driven a store at Skólavörðustígur 19 in Reykjavík a now also at Laugavegur 53b where members also deliver their products and get wool to be able to continue their knitting. Sale to wholesalers is also a big deal of the business.

The primary focus in the stores is selling goods that are made by members from Icelandic wool mainly lopi but also a good select of products that are machine made in Iceland from Icelandic wool. The association‘s slogan has always been „buy directly from the people who make it“. Every three of four customers are tourists who prefer goods made in Iceland. They can be sure that handmade woollen goods that are for sale in The Handknitting Association of Iceland are knitted in Iceland, from wool from Icelandic sheep, more Icelandic can it hardly be.