several children, settled there to provide blacksmith services to the growing farming community in this prosperous region. The couple also decided to sell drinks and overnight services; this part of the business grew fast and earned Árni a new nickname, "Árni Vert" or "innkeeper Árni". In 1873 the first merchant settled in Sauðárkrókur. The shopkeeper Erlendur Hallsson built the second house here, trading from his living room. By 1900 around 400 inhabitants lived here, and the settlement was evolving into a fully formed village with hospital, school and church
