The American clothing retailer Hollister, a subsidiary of Abercrombie & Fitch, is closing its only store in Aberdeen, Scotland, at the end of February 2025. This closure marks the end of a 15-year presence for the brand in the city, having first opened in Union Square in 2010. While the company has stated its commitment to physical stores and expressed interest in exploring new locations in the UK, including Aberdeen, the immediate impact is a reduction in Hollister’s Scottish presence to just three stores: two in Glasgow and one in Edinburgh. This closure follows a similar trend in the retail sector, with Fat Face recently exiting the same Union Square shopping center. These closures reflect broader challenges facing the retail landscape.
Hollister’s trajectory in the UK began with its first store opening outside North America in London in 2008. This was followed by rapid expansion across the country, including the Aberdeen location in 2010. The brand, known for its California-inspired clothing and distinctive store aesthetic, continued to grow, incorporating its intimates brand, Gilly Hicks, into some locations. Despite aiming to open seven new stores in the UK in 2025 and operating 50 stores as of January 2025, the Aberdeen closure suggests a strategic shift in the company’s approach. The decision to close a well-established store indicates a complex interplay of factors influencing retail decisions in the current economic climate.
The recent spate of store closures in the retail sector is a complex issue with multiple contributing factors. The rise of online shopping, accelerated by the COVID-19 pandemic, has significantly impacted foot traffic in physical stores. Consumers have become increasingly accustomed to the convenience and often lower prices offered online. Simultaneously, the rising cost of living, driven by inflation, has reduced consumer spending power, leading to less disposable income for discretionary purchases like clothing. This combination of decreased footfall and tighter consumer budgets has placed immense pressure on retailers to maintain profitability. The closure of Hollister’s Aberdeen store is a symptom of this wider trend.
Furthermore, increasing operational costs are squeezing retailers’ margins. The impending hike in employer National Insurance contributions and the rise in the minimum wage add further financial burdens for businesses. These increased costs make it more challenging for retailers to maintain profitability, particularly in locations with lower sales performance. The Centre for Retail Research’s prediction of 17,350 retail store closures in 2025 underscores the severity of the challenges facing the industry. These closures are not isolated incidents but rather indicative of a fundamental shift in consumer behavior and economic realities.
The retail landscape is undergoing a significant transformation. The traditional high street is facing numerous challenges, including the rise of online shopping, increased operational costs, and changing consumer habits. Often, retailers are choosing to close underperforming stores in favor of more profitable locations or focusing on online sales channels. Retail parks, offering free parking and often larger store formats, are proving more attractive to both consumers and retailers. This shift in preference further contributes to the decline of traditional high streets, leading to a vicious cycle of store closures and reduced footfall.
The closure of Hollister’s Aberdeen store encapsulates the broader struggles of the retail sector. While the company expresses its commitment to physical stores, the decision to close this particular location reflects the economic pressures and evolving retail landscape. The confluence of online competition, rising costs, and changing consumer behavior requires retailers to adapt and innovate to survive. The future of the high street remains uncertain, and retailers must continue to evolve their strategies to remain competitive in this dynamic environment. The Hollister closure is a microcosm of these wider challenges, highlighting the need for both retailers and local authorities to find creative solutions to revitalize town centers and adapt to the evolving needs of consumers.
