Should Aritzia Be Buying Fred Segal?

Aritzia, the fast-growing Canadian fashion boutique catering to Gen Zers, has acquired Fred Segal, the iconic West Coast retailer that helped define the “California cool” aesthetic for decades.

The acquisition, for an undisclosed price, includes Fred Segal’s intellectual property and trademarks. Aritzia also signed a lease for the famed Fred Segal store on Melrose Avenue, with plans to reopen it and restore its ivy-covered façade.

According to a statement from Aritzia, plans for the store include establishing a new “experiential destination that reflects the creative spirit that has defined both brands. The space will bring together curated product and immersive experiences that transcend traditional retail while also serving as a dynamic lifestyle hub. Our focus now is on revitalizing the Fred Segal brand across product and retail, with the goal of reestablishing it as a true destination.”

Fred Segal began in 1961 as a concept store called Pants America — selling designer jeans for $19.95 a pair, when jeans were selling $3.00 at the time — before expanding and rebranding under its founder’s name.

“The brand quickly gained attention with the private-school set, musicians and mothers and daughters looking to splurge,” wrote Yola Mzizi, a style reporter for The New York Times. “Mr. Segal, who died in 2021, was credited for pioneering a style that would soon become synonymous with Los Angeles: low-slung denim, tight fitted T-shirts and Danskin leotards.”

The store was early to establish up-and-coming brands, including Kate Spade, Juicy Couture, J Brand, and Hard Candy — as well as Raf Simons, Dries Van Noten, and Maison Margiela from Europe.

Fred Segal also earned credit for pioneering the shop-in-shop concept as well as experiential retail, as its stores became destination locations due to its celebrity clientele. Some of the store’s earliest customers included The Beatles, Diana Ross, Farrah Fawcett, and Elvis Presley, with Lenny Kravitz, Jennifer Aniston, and Kendall Jenner associated with the store in more recent years. Frequently a reference to chic Los Angeles, the store has been namechecked on TV mainstays such as “Beverly Hills 90210” and “Dawson’s Creek,” and films including “Legally Blonde” and “Clueless.”

At its height, Fred Segal operated nine stores in California as well as locations in Switzerland, Taiwan, and Malaysia. In 2024, the last two stores closed –reportedly due to the pandemic — but also to online competition, other stores embracing experiential retail, and underdeveloped private-label offerings.

Aritzia’s Fred Segal Acquisition Could Accelerate US Growth

The move potentially accelerates Aritzia’s aggressive expansion push into the U.S. Launched in Vancouver in 1984, Aritzia has found success with an “Everyday Luxury” philosophy that positions the chain a step above fast fashion with a focus on high-quality, minimalist fashion at still-accessible price points. The brand also stands out for the in-store experience, featuring larger dressing rooms, personal shoppers, lounge areas, and cafés.

U.S. expansion began in 2007 with openings accelerating following its 2016 IPO. Of its 140 stores, 72 are in the U.S. and Aritzia sees room to add more than 150 Aritzia locations in the U.S.

In e-mailed answers to WWD, Aritzia declined to comment on whether the Aritzia brand will have a presence at Fred Segal, but indicated the acquisition will help support Aritzia’s geographic expansion, e-commerce growth, and brand awareness.

In its statement, Jennifer Wong, CEO of Aritzia, called Fred Segal “a cultural touchstone in Los Angeles — a place where creativity, community and style converge.”

“We are honored to steward and evolve this iconic brand for a new generation with the elevated experience and ‘everyday luxury’ that define Aritzia,” she said. “With the acquisition, Aritzia will bring that ethos to Fred Segal, honoring the brand’s storied heritage while reimagining its future for a new generation.”