Luxury brands have often viewed off price as a necessary evil; good for consumer demand yet at odds with brand exclusivity. In addition, the “crammed bargain treasure hunting” model that accompanies most off-price retail locations might be fun for some shoppers, but definitely turns off others.
MadaLuxe is disrupting that format with its newly opened MadaLuxe Vault boutique that offers class instead of chaos…at off-price prices (think 60% off).
“This model works so well because the brands trust us to do this in a way that protects brand integrity,” says Adam Freede, Co-Founder and President of MadaLuxe Group, noting that since 2010, the company has partnered with Europe’s luxury houses seeking a North American distribution strategy for excess inventory. MadaLuxe Group also imports and distributes full-price timepieces from Ferragamo, Versace and VERSUS Versace, and is an equity owner of Haute Hippie. Overall retail sales have grown to $200 million since the outset.
There is no vintage or pre-owned merchandise. “Everything comes from the wholesale division in original packaging with dust bags,” adds Freede.
The brick and mortar opening coincides with the launch of the store’s e-commerce site, although “in the nature of exclusivity,” there are brands and products in the retail store that won’t be sold on the website out of respect for the brand. “The overall tool in luxury is the less you put online, the less diluted the brand is,” says Adam Freede, Co-Founder and President of MadaLuxe Group.
“Los Angeles is an ideal location for us to launch our first MadaLuxe store, and we are thrilled to bring on extensive retail talent as we look to build on this exciting new consumer shopping experience in the luxury off-price market in a variety of strategic real estate locations,” added Freede.
The 3,000 square foot space features a broad mix of designer handbags, eyewear (600 designer skus of mostly sunglasses, to be exact), accessories and timepieces from top European luxury brands. Prices range from sunglasses starting at $99.99 and can go up to a Fendi Backpack for $2,100.
It is located in the Citadel Outlet Mall off the freeway.
“The MadaLuxe Vault concept has been created to attract a passionate consumer seeking authenticity, luxury expertise, quality and great value. Consumers now have a place to shop their favorite luxury brands in a sophisticated boutique setting,” said MadaLuxe Group CEO and Co-Founder, Sandy Sholl.
To lead this admittedly “tricky dynamic,” MadaLuxe recently hired retail and luxury expert Darin Skinner as Senior Vice President of Stores to oversee the expansion of MadaLuxe Vault.
MadaLuxe Vault will donate a portion of its retail and e-commerce sales to World of Children to fund high-impact programs dedicated to changing the lives of vulnerable children around the world.