California Apparel News

Laundry by Shelli Segal is expanding into the retail business. The Southern California label, owned by New York–based Liz Claiborne Inc., has opened its first store in Los Angeles.

The designer of women’s contemporary wear settled on the Beverly Center as the place to showcase its collection of sportswear, dresses and eveningwear.

The 21-year-old shopping center, which has been competing with the recently opened The Grove at Farmers Market for foot traffic, seemed the perfect spot for Shelli Segal’s line, which is displayed in a 2,500-square-foot space with minimal deacute;cor.

“If you look at our clientele, which is a trend-driven woman who is buying happiness, the Beverly Center seemed a good spot,” said Paula Schneider, president of Laundry by Shelli Segal. “There is Dolce & Gabbana and DKNY there. The center attracts more of our kind of consumer.”

The Beverly Center store, which opened in May, is the third outlet in the company’s retail lineup.

Laundry by Shelli Segal opened its first store in New York’s Soho district four years ago. The company was purchased by the label-hungry Liz Claiborne in 1999 for approximately $39 million. Soon after, the second Laundry store opened in the South Coast Plaza in Orange County.

While this may not seem the most auspicious time to be opening a retail venue in a pricey shopping area, Schneider said it made sense for the company to go forward while retail spaces are available and leases can be negotiated.

“We will open more stores in the next five years,” Schneider said. “If we trend like we are trending, we will be opening more.”

Those stores will be concentrated on the East and West coasts—particularly in Florida, where Laundry by Shelli Segal has a loyal following.

The label also sells in upscale department stores such as Neiman Marcus, Bloomingdale’s and Macy’s.

Label-conscious strategy

Liz Claiborne has been on a major Southern California shopping spree, snapping up successful brands that could profit from its deep pockets.

The powerhouse company, which had $3.7 billion in sales last year, bought 85 percent of Lucky Brand Dungarees four years ago in a deal that was expected to total $145 million.

Next on the list was Laundry by Shelli Segal.

Then last March, the New York apparel maker purchased Travis Jeans Inc., which makes Juicy Couture casual clothing. Financial terms were not disclosed.

Other brands in the Claiborne stable include Sigrid Olsen, Dana Buchman, Ellen Tracy, Mexx and Villager.

Recently Liz Claiborne announced a new retail strategy. It plans to close 22 domestic Liz Claiborne–brand specialty stores in the United States by the end of June and concentrate on expanding its other brands’ retail divisions.

Liz Claiborne plans to open three Mexx stores this year, with an 11,000-square-foot flagship store opening this fall on Fifth Avenue in New York. And the company also plans to launch six Sigrid Olsen stores this year, beginning in the Boston area in late summer.

While Liz Claiborne is the mastermind behind this multiple brand-building strategy, most of the newly acquired divisions remain relatively autonomous.

Lucky Brand Dungarees still operates out of Vernon, Calif., and Laundry by Shelli Segal is still located in the Los Angeles area. In early 2002, the upscale women’s manufacturer moved from its Huntington Park, Calif., location to City of Commerce, Calif.

Designer Shelli Segal is a consultant to the company, which has 140 employees at its headquarters.