The old Alafoss wool factory was established in 1896. It is said it marked the true beginning of Iceland's wool industry. The shop we visited is located in the old factory house by the waterfall, about 15 minutes outside of Reykjavik.
At the back of the shop we found some old knitting and factory machinery and some vintage patterns and photos. We also spotted an Icelandic jumper in the making.
I did have space in my case for a small purchase of yarn, which I will be using very soon and is absolutely not just adding to my stash. Which is quite a small stash anyway, just in case anyone is interested.
This is the quirky dressed window that greets you on arrival at Alafoss. I hope you can make it out, not a brilliant pic' I'm afraid.