The company was founded in 1918 by the technically minded Clas Ohlson [sv; no] (1895–1979), as a mail order business based in the Swedish village of Insjön, Dalarna.

[3] The first store outside Sweden was opened in 1991 in Oslo, Norway and in 1999, the company was listed on the Stockholm Stock Exchange.

In May that year, the company opened the first Clas Ohlson branch outside Europe, a store in Dubai's Mirdif City Centre.

The Dubai branch later closed, with Clas Ohlson focusing on European expansion.

Today, Clas Ohlson has a physical and online presence in Norway, Sweden and Finland.