Bank of Scotland-backed fashion brand weaves success with London expansion

Islander's St Andrews shop (credit: George Iordanov-Nalbantov)
Scottish fashion brand Islander is set to take its Harris Tweed handbags from the cobbled streets of Edinburgh to the fashion capital of London, creating jobs and building on a sales surge that has pushed turnover into the multi-millions in just three years, supported by Bank of Scotland.
The company has grown rapidly since bouncing back from Covid with just six staff, now employing 55 people with plans to reach at least 70 within three years, and expansion is already underway with a London store set to open next year.
Bank of Scotland has played a key role in Islander’s rapid growth. Switching to the Bank’s Cardnet® merchant services has cut card processing costs by around £40,000 a year, freeing up funds to expand its Sighthill warehouse. Moving to the Bank’s Commercial Banking Online platform has also streamlined payroll, automating payments for 55 staff and giving founder Pei Ferguson more time to focus on growing the business.
Founded in 2010, Islander combines contemporary design with Scotland’s textile heritage and holds an exclusive partnership to create handbags, footwear and accessories from world-famous Harris Tweed. From its first Edinburgh shop on Victoria Street, the business has grown to eight stores across the city and one in St Andrews, supported by a thriving wholesale trade and its popular hands-on workshop experience.

The workshop, which began in a single upstairs space, now runs across five locations. In just one hour, customers can design and craft their own mini satchel handbag - an experience that has become a hallmark of the brand.
Islander has also launched Baa Baa Sheep, a dedicated Edinburgh store celebrating Scotland’s love for its woolly icons. Stocking knitwear, ornaments, toys and homeware, the brand plans more locations in the capital as it strengthens its partnership with Erin Knitwear.

Islander's Edinburgh shop
Looking ahead, the business is working with Bank of Scotland on an electric vehicle salary sacrifice scheme, helping staff make the switch to zero-emission cars.
Pei Ferguson, founder of Islander, said: “From our first Harris Tweed boots to opening stores across Scotland, Islander’s journey has always been about blending heritage with innovation.
“Our workshop experience has brought customers closer to our craft than ever before - it’s hard to believe it’s only been three years since we opened that first small space above one of our shops.
“When we began planning our expansion, my dream was to open in New York before London. With 150 wholesale stockists in the US and strong sales of tartan and Harris Tweed, it felt like the natural next step. But we decided London should come first, allowing us to manage things more closely from home before making the leap to New York.
“Having the support of Bank of Scotland has made a huge difference. They’ve helped us save money, invest in our warehouse and streamline our operations, freeing me to focus on what I love which is growing the business, connecting with customers and taking our brand from Edinburgh to the world.”
Ross Penman, relationship manager at Bank of Scotland, said: “Islander exemplifies how a Scottish brand can innovate and use its heritage to capture opportunities. Their growth is underpinned by creativity, exceptional customer experience and a strong commercial focus. We’re proud to support Pei and her team as they build on their success.”