By Gary Symons
TLL Editor in Chief
The Canadian fashion giant Aritzia has leveraged its continued strength to acquire the U.S. brand Fred Segal, as well as the lease for its landmark location on Melrose Avenue in Los Angeles.
Aritzia Inc. announced the acquisition of Fred Segal on Thursday, but did not reveal any financial terms for the deal, which sees a venerable fashion brand being acquired by a fast-growing rival.
Over 65 years ago, Fred Segal opened a local denim store called Pants America. The tiny, 300-square-foot store grew over the years, and with the move to LA’s popular Melrose Avenue shopping destination in 1961, the name was changed to Fred Segal.
Through Segal’s ongoing acquisition of adjacent properties, it grew into a 29,000-square-foot, 102-parking-spot retail center, known for the thick covering of ivy that festoons the building.
Fred Segal expanded over the decades into an apparel and accessories brand known for attracting celebrity customers and establishing itself as a cultural icon in Hollywood. The brand changed ownership multiple times before recently closing its retail locations.
Aritzia is a Canadian clothing retail company founded in Vancouver, British Columbia, by businessman Brian Hill in 1984. Aritzia sells a variety of lifestyle apparel through various upscale retail stores across Canada, the United States, and online. Aritzia describes itself as an “everyday luxury” brand at attainable prices.
Since the first store opened in Vancouver the brand has expanded throughout Canada and the United States. As of January 2021, Aritzia operated 101 stores in North America, of which 83 are boutiques located in Canada. There are 44 Aritzia stores in the USA, including a 13,000 square-foot flagship location in Manhattan. Aritzia is now headed by CEO Jennifer Wong, who took over from Hill in 2022.
Wong says Aritzia now plans to restore the Melrose property’s ivy facade, which sustained damage during a recent storm, and eventually transform the site into what the company described as a space for “curated product and immersive experiences that transcend traditional retail.” The company did not provide a timeline for the renovations or detailed plans for the Fred Segal brand’s future operations.
“Aritzia is now honoured to steward and evolve this iconic brand for a new generation,” Wong said.
Some retail analysts have questioned the strategy. Neil Saunders, managing director of research at GlobalData argued, “Aritzia does not need Fred Segal. Fred Segal’s glory days have long since faded and the brand is now regarded more with fondness than commercial admiration.”
That said, Aritzia has achieved success by focusing primarily on creating an almost cultish following for its own brands. Aritzia’s existing brand portfolio includes TNA, Babaton, Wilfred, Sunday Best and Super Puff, several of which have been expanding as the company grows beyond the Canadian market.
The acquisition adds a heritage American brand to Aritzia’s stable at a time when the retailer is actively pursuing international expansion.