E-tailer Madaluxe Stores Fuels

By Sherry Hsieh  

Monday, August 27, 2018

Chief Executive Adam Freede describes MadaLuxe Group’s e-commerce platform for its direct-to-consumer division, MadaLuxe Vault, like “a startup division with a more established company.”

The Seal Beach-based firm is no startup itself; it bills itself as the largest wholesale distributor of luxury fashion in North America, and has owned its 64,000-square-foot headquarters at the Pacific Gateway Business Center for over a decade.

MadaLuxe’s recent startup aspirations began when it stepped up its nascent digital efforts this year, once Freede, who was previously president, took the chief executive role. His mother, Sandy Sholl, was formerly chief executive. She continues to serve as executive chairman overseeing marketing.

It opened its first MadaLuxe Vault store last year in Commerce and just opened a second location in San Clemente. The boutique stores, both in Craig Realty Group outlet malls, offer luxury goods at discounted prices.

Freede said the company’s direct-to-consumer approach is unique, in that there are no competitors in the space that carry only luxury goods, and that it emphasizes the in-store experience.

The company’s growing base of retail stores is expected to drive more customers to its website.

“You don’t have credibility with just a website,” he said. “Our stores will create a window into who we are and what we are, and fuel our website,” he told the Business Journal at the grand opening of the San Clemente store.

The company said it plans to open a third boutique store outside California in a few months; a location was not disclosed.

Freede said the company is careful in picking store locations, as well as in choosing which brands are listed on its website. “We have to be very strategic to protect our brand partners.”

It also has a showroom in New York of about 9,000 square feet, according to news reports. The company bills the N.Y. location as its East Coast headquarters.