The news: Aritzia purchased the intellectual property of storied Los Angeles retailer Fred Segal and announced plans to revive the brand’s iconic Melrose Avenue flagship store, per Women’s Wear Daily.

The details: The reincarnated Fred Segal store will combine a curated product assortment with immersive experiences, with the aim of creating a “dynamic lifestyle hub,” according to a company statement. The company provided few details of what that might look like—including whether Aritzia’s brand will be present—but noted that its “focus now is on revitalizing the Fred Segal brand across product and retail, with the goal of reestablishing it as a true destination.” The retailer had closed its last stores by 2024.

The implications: The Fred Segal acquisition aligns neatly with Aritzia’s US growth strategy, which relies heavily on larger-format stores in key retail corridors to drive sales and customer acquisition. Those flagships act as billboards while delivering elevated shopping experiences, complete with perks like more spacious fitting areas and in-store dining options.

Fred Segal’s brand recognition could help support Aritzia as it looks to more than double its US footprint. Its cultural cachet, though faded, could help Aritzia broaden its audience and grow its menswear business, as well as burnish the retailer’s reputation as a destination for accessible luxury.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.