Saturday, August 29, 2015

Fred Segal Closes at SLS

Part of the SLS business plan was to bring popular Los Angeles restaurants and shopping options to Las Vegas in an attempt to capture the LA crowd. One example of that was having Fred Segal as the exclusive retail partner of the resort.

The plan doesn't seem to be working, as this week it was reported that all seven of the Fred Segal stores at SLS have closed and left town.

Respected Las Vegas blogger David McKee tweeted: "SLS Las Vegas: Now w. 100% less Fred Segal!"

This photo has also been making the rounds, showing an empty Fred Segal location at SLS:

Photo: Stephen G. Hall.

It's no secret that SLS has been struggling to attract visitors which has led to poor financial performance. The Fred Segal departure doesn't look good, but retail only makes up about 3% of the SLS revenue stream. If they can replace those stores with something that makes more money it might actually end up being a good thing. Maybe.

SLS is struggling financially Part 1.
SLS is struggling financially Part 2.