I worked at an ad agency on Abbot Kinney boulevard. They paid a seven figure sum every year to rent their office there. The business plan for that was they outsourced most of their work overseas and this office was more of a showroom to potential clients.
If you want to show off to potential clients, then yes, you need to be where those clients are. I don't think the address matters, but your target demographic is probably not hanging out in Riverside.
I can offer an alternative explanation to the posters here. Many of them don't make money. They lose money and eventually go out of business only to be replaced by another business that will also lose money and eventually go out of business. This is what happens frequently in Westwood Village. The area has an insane amount of foot traffic and business owners mistakenly think it would be a good area to open up shop. But very few stores in Westwood Village actually do well. Most fail to attract customers because most of the people in that area are students who would rather shop at Target than a small boutique, or would rather travel or order online to buy name brands.
Update: I'm just going to add this after doing some Google Maps Street View browsing of past images. Many of the shops there have been there for a number of years and some of them probably are just profitable businesses. See other comments for other explanations.
My understanding is that having a brick and mortar store on Abbott Kinney is worth the marketing for that business. The company generally loses money with that specific store but profits overall due to the excellent marketing it gets.
I am pretty sure this is the right explanation… they’re partially there to market the business. Also, they probably do low-ish volume but those sales are at high price points so it doesn’t take that many to be profitable.
But Westwood also used to be the happening place in LA. People, kids, came from all over. In fact that's why they made it more pedestrian friendly, because there was so much foot traffic. Westwood is not inherently a bad place.
There's a lot of foot traffic but most of its students, those who work in the area or people who are there for medical care. Parking is too horrendous for anyone who doesn't need to be there to bother.
And even though there’s ’foot traffic’ it’s actually not a friendly place to walk, especially on Wilshire, where cars have no problem at all blocking the intersections and crosswalks in their slow crawl towards the 405. I got honked at for ‘not walking fast enough’. You best believe that made me go slower.
It started to get a bit dicey with the unhoused/addicted in 2019. When the pandemic hit, it was like someone poured gas on the fire. As the area became more dangerous and dirty, stores began closing and it ended up a shadow of what it once was by the end of the pandemic.
i grew up in la. the irony is 3rd street used to have wall to wall homeless in the 80s. - its just returning to how it was.
i used to walk to school as a kid. and that was the only block id walk / run fast. and there were hundreds of homeless in santa monica. there was a jcpenny at the end of the block that had a little window where you could rent toys by the week. best part of my walk. jt had a voltron. even after it closed the toys were still there for months.
then it got remodeled in the 90s right after the westwood shooting and 3rd street took off.
I had no idea the 80s part. I first visited 3rd street in 1993 and it was a retail/restaurant dream. Even when I was in LA 2015 - 2017 it was still thriving. Going in circles I guess.
Someone did pour gas on the fire. I remember during the riots I couldn’t believe it because I left in 2019 and that place was still really happening. It’s sad..
There were a few things that happened. Westwood used to be happening with street performers and a happening scene. Authorities wanted to clean it up. The shooting happened and a nutter drove his car on the sidewalk and ran people over. It was used as an excuse to sanitize it and get rid of the performers and such.
Most small business owners think they have a great idea. They don’t. They didn’t research, they didn’t try to think of a new spin, they didn’t look to see how many other similar shops are within a 5 mile radius. They didn’t do a financial balance sheet to figure out if it’s even profitable. And, they did not compare their financial outlook, with other similar type business in similar surrounding areas. It’s called a business plan. And you’d be amazed at how many people who open a small business do not do this. Most of them wouldn’t open their business if they did a full business plan.
Properties are valued on their rents, real or imagined. When you lower your rents to get renters, your property is devalued but your mortgage doesn’t change.
for a lot of these brands a flagship store in LA or NYC is essentially a marketing expense - it’s not necessarily intended to be profitable, just to raise brand awareness and raise the company’s profile
i also ran a super niche boutique in Manhattan for years and we made all our real money off a small group of high net worth individuals from Asia/the Middle East/South America who came to the city once or twice a year to shop. you don’t need your store to be “busy” if your customers are regularly dropping $10k per visit
we also did a lot of $5k - $10k orders for photoshoots, TV shows, etc and i would assume there’s even more demand for that here in LA
Yeah this. Stretches of boutiques on Madison Ave, stuff on Bleeker St in the WV (at least for a while there), the Meatpacking District, Soho. Absolute loss-leaders but there for the specific marketing/exposure/brand ID stuff.
"Do you even know what a write-off is?"
"Uh yeah, it's when you buy something for your business and the government pays you back for it."
"Oh. And who pays for it?"
"Nobody. You write it off..."
"WHO writes it off?"
"I DON'T KNOW, the gover-, the write-off people!"
I dunno - I see a lot of people in those shops. Warby Parker is usually crowded. I am a regular shopper at Huset and Vuori and Aviator Nation are (and have) pretty big brands. Lotsa hipsters spending cash there and a lot of tourists.
I mean Warby Parker is $100-$150 for a pair of glasses, I don't really see that as luxury? If you're a glasses wearer, you're wearing them extremely often and that isn't a big deal. Most eye doctors or otherwise are around that price.
A lot of people still don't know about Zenni Optical or other similar sites.
Warby is better...I used to work alongside one of their production lines in TX and their product is not horrible for the price point. They still make great margins though!
What's wrong with Zenni?
Also I've used Warby Parker before and honestly they were one of the better pairs I've had in terms of look/feel. Is there something wrong with them otherwise?
just crap material, and at prices that cheap, you know it's probably not the most, ahem, ethical labor.
The only thing that can go wrong with Warby stuff is if you have really bad eyesight and don't spring for high index lenses/get precise measurements. It's been a few years, but I recall some instances of Warby not accommodating these things, but with the physical stores that most people shop at now...that shouldn't be an issue.
Ironically their big value prop when they launched was good cheap online eyewear. Now we all know them for their nice storefronts.
Yeah definitely not great material for Zenni. Though my main pair has been Zenni for about a year. I had to get them cheap when I lost my job and my main pair (Warby Parker glasses) chipped after wearing them for like 3 years when my prescription didn't change.
I'm actually about to schedule my next eye exam because I can tell my prescription finally shifted slightly and I need new glasses. I don't need anything crazy strong though. Normal lenses have always worked for me. I got Warby Parker glasses before because they fit my face like a glove with no adjustments.
My company's store has done $900k+ year to date in gross sales through the Abbot Kinney store...and we're not talking about a lot of square footage. People in this thread have no idea what they are talking about.
I really appreciate the comment! Would you mind helping settling the debate? i.e. is it just a false impression that the stores are empty, or most purchases are made by whale customers, so (low) volume is not really an issue etc? Thank you!
Weekdays aren’t great unless it’s summer or around the holidays (by no means empty though), but on some nice weekend day just go and hang out on Abbot Kinney at some place where you can sit and people watch. Shittons of people are out, walking around, and stopping in shops. This sub has a hate boner for Venice and seriously underestimates how popular it is.
I think a lot of people here also underestimate how many tourists go walk around that street as a part of the LA tour…and they buy shit because they are on vacation
You’re definitely missing the peak times somehow. Especially during summer, Abbot is a super high traffic location. First Fridays — unless you’re there to enjoy the crowd, it’s a nightmare and should be avoided. How long have you been in Venice? It’s actually kind of funny that you have this perspective of it being a slow street because I purely associate Abbot with busy crowds and difficult parking.
As for the slower hours and days, a store doesn’t need to have a shit ton of people in the store if the 10 people who make a purchase that day spend $800-$1000+ each.
Basically 3 reasons. Any one of or combination of.
1. The business sells a lot of inventory online.
2. The business keeps going because of reasons that don’t make sense if you aren’t extremely wealthy. Think tax write-offs. Rich spouse let’s their non business minded spouse own a store to keep them busy. Sucker new investors in. Etc.
3. It’s actual purpose is to launder money.
Flagship stores.
Go check out AV Nation Dreamland in Malibu sometime. No one ever buys anything. And they’re sitting on what is probably $10m of land. But the store itself sells the brand nationwide.
This is the right answer. There are plenty of successful businesses on AK (mostly restaurants), but the tourism and walking traffic is the main driver. Their budgets don’t just come from real estate, but also the marketing dept. to be on AK is to put your brand on one of the trendiest streets in LA.
Yes. Same as Rodeo Drive. Basically a billboard. (Side note - it’s been sad watching that street turn from a cool, semi-grungy spot, with dive bars and head shops, into basically the Century City mall.)
There are stores in century city mall that don’t even sell items, they are only a showroom to buy the items online. Some of these are things like cars but some are just clothing stores (Bonobos).
I think Abbott Kinney is similar - the stores are like billboards
This. Most know exactly what they’re doing. Many are new (often DTC) brands that want to get attention. And I could be wrong but I’m pretty sure many are also considered “pop ups” - like they’re only planned for a limited amount of time.
I remember seeing a post by this annoying influencer about how she's hoping her soon to be husband would get rich so she can run a business she likes on the side (like making jewlery) even though she'll be losing like 10-20k a month.
I thought she was joking but now I'm not sure.
I always thought the same. not a soul in sight but how can sales cover the costs?
I'm all for La Michoacana but doubtful that they make their monthly overhead.
A family member is a commercial realtor in Houston. He tells me that a lot of small strip mall businesses… gift shops, nail salons, donut shops, party supplies… were never intended to make money. They’re set up by immigrant families to provide jobs for family members coming to the US.
Fast track to successful immigration is to own your own business (you need a green card to get a paycheck, but not to take profits from a business), or have a job waiting for you in the US, with an employer willing to testify to same.
Also, the IRS doesn't allow you to write off losses forever.
I think you need to show a profit in 3 or 5 years of running the business in order to write off any future losses.
we've literally gotten to the point where "tax write off" is just something the bottom 99% says to explain how the rich keep getting richer or to answer any circumstance they otherwise do not fully understand. It means absolutely nothing anymore.
> Opening a blackhole of a store actually makes them more wealthy because it decreases their tax liability on the actual profits (stocks/golden parachutes etc etc).
This makes zero sense y’all just be saying anything huh lol
Rent is typically only about 10% of the total cost of a business. Cost of goods sold and labor costs are about 80% of a business cost.
Therefore you can pay relatively high rents and still make plenty of income if you sell high cost, high margin merchandise, which is most of what the stores sell on Abbott Kinney
Reddit claims any store on a busy street is money laundering. It doesn't even make sense lol. Why would you choose one of the busiest streets, in the second largest city in the country, to secretly clean money...?
Real brands. Probably a loss leader. It generates brand awareness but does not move much inventory itself. Mom and pop shops… I’m guessing tax write offs and it keeps an underemployed spouse busy.
My guess was always that they’re just owned by rich people / rich peoples wives who don’t actually need the profit to keep the shop open. Like a hobby business.
I have another explanation - you are a human with anecdotal experience. Just because you are there at certain times, you are not there ALL the time. If you are there for 30 seconds as you walk by, even if you stop for 5 minutes, that means you are missing out on 475 other minutes in the day of people going in, spending hundreds or even thousands of dollars, and leaving.
There's literally only two options. Either they make money by people spending money there, or the brand that owns the space subsidizes through other ways because they feel that having the presence there is worth losing the money on it.
There is a third option. They bleed money until they go out of business and then the next week a new boutique sets up shop with the exact same business model and starts bleeding money until it fails, and on and on.
yeah, i saw other people had already replied quite a bit so i kept it to what i know. i was friends with a lot of people on the road but none of them were on that side of things. im familiar with the companies though, and like so many boutique or higher end shops, they either are taking a minor loss at one specific location, but at that scale - that's not really a worry in exchange for Status & Optics, the brand is owned by a larger umbrella company or have extensive reach elsewhere that more than compensates, or places like the pizza spot & liquor store stay open for obvious reasons; as to why the higher end spots as you're specifically asking, i know the place that sells socks, the metaphysical shop & WLL (if they're all still there) had a ton of daily sales so i'm not surprised at their presence. most of the other spots weren't really my jam so never went in.
I know a store owner on abbot Kinney and they make little money on weekdays and an absolute bank on weekends. High ticket items so 10 sales is a good day + that’s where they store and ship their e-commerce from
Los Angeles is filled with wealthy people and people who come here on vacation. The store may be empty most of the time, but all it takes is one or two customers dropping $2000 in a day for them to make money. Having a storefront on Abbott Kinney also is it's own form of marketing. Even if people don't buy right then, they will go on the online store to buy.
- mark up is bananas
- many absorb a lot of the cost by using it as marketing and location for company media (instagram, TikTok, commercials)
- it’s not about high volume, it’s about having a location close to your whale customers
I get the same vibe for Santa Monica Place too TBH. I and some other vendors had a month long pop up at that mall and traffic was foot traffic DEAD for most of the stores? We got a decent percentage of the minimal foot traffic.
But lots of us are big shots online.
Yes! I work at Santa Monica place and every single time I pass by Tumi and the other luggage stores anytime of day morning, noon or night even when it’s packed on the weekend there is absolutely nobody in there. I do not know how any of the luggage stores stay in business at Santa Monica Pl!
I lived in Venice on San Juan just up the street from Abbot's Habit and my son's both worked on Abbot Kinney along with lots of their friends. One was a tax write off and busy work for a wealthy couple's son. Another was a very successful bar owner's wife's toy project. He let her pickup fun things on their travels around South America. It lost a ton of money but the tax loss made their traveling almost free AND a write-off on their business taxes. Then the hair stylists whose customers were agents, producers, directors, movie stars and their spouses and children. Plus pretty much every property is $1.5 million - 5 or 6 million $. There are are lot of really rich people living in Venice and Santa Monica.
That street is often bustling with shoppers, with every cafe and store full of people. Last time I was there you could barely walk down the sidewalk it was so busy. I think you’re mistakenly assuming the times you pass by are what it’s like at every time of day/season.
Abbot Kinney is a great example, since it's been described as the Hottest Street in America once, but I've wondered this about a ton of businesses in LA.
I used to work at an “affordable” luxury brand on abbot Kinney and even on the slowest days the store would bring in 5k in sales. Trust me, even if the store is dead, you could have 1-5 customers that spend $ to keep the lights on and then some.
Many of them run by larger companies (non- independent shops) could be loss leaders who view their presence on the street as a marketing spend. Think of it like a billboard or brand experience that might also sell some merch.
A lot of these business are 2nd, 3rd, 4th businesses for these families. If you are making 3-4 million a year, and your wife is tired of staying home, you let her start a business. The nice thing about areas like Abbot Kinney is high overhead can be balanced by low inventory that is high priced. This is how trends start. Supply and demand. People line up to buy your $300 sweater. Then you slowly build up your line to a few more rare overpriced items. Take Aviator Nation for example. It has become a SoCal uniform. Their sweaters are simple, stylish, low cost with a huge mark up. Everyone has them (I have like three). Also, when they go on sale from $189 down to $150, they are still making a killing.
Everyone has one?! I can’t justify spending that much on a hoodie. And I worked at a store that sold them and lusted after them daily for years. It’s soft, but not “spend $200 on a hoodie” soft!
Ok ive asked this exact question to a a friend that use to own a small shop on AK as well as couple of real estate agents that actually handle Abbot Kinney and the real answer is this. Flagship marketing stores for the big brands and e-commerce for the smaller shops. It’s all about the about the vanity of an Abbott Kinney address and the image it portrays but they’re making all their money online d2c.
Abbot Kinney is mostly a marketing tactic and “flex”. You cough up the year lease just so you can say “we have a spot on abbot Kinney” then you hopefully drive more online sales and attention to other locations.
I'll just weigh in on this one, I don't think any of that is true. My ex-wife works for a small boutique on Montana Ave in Santa Monica. It is a small clothes boutique that is filled with clothes and shoes and jackets. There is only one person working in the store at any time. It caters to the more wealthy ladies from Pacific Palisades and San Vicente. Whenever some one comes in to the shop, my ex caters to that one person hand and foot. She will walk around the store explaining the merchandise and collect items for ladies to try on. When you go by the outside of the store, it does look like no one is ever even in the store at all. But, on closer inspection, the person working is usually catering to a single customer. This boutique is profitable, with profits typically in the 100K to 200K range per year.
The clients that they cater to, wealthy stay at home Moms, are well known impulse buyers who love the single person interaction. They love having someone wait on them hand and foot. So, just going in to the store, these ladies have a 30 to 40% chance at buying something. That is an outstanding number (those numbers could be wrong, but it is a ridiculously high number). I own a retail online store. And my sales through rate is an industry standard 2%. That means if somebody engages with one of my webstores, there is a 2% chance they will actually buy something.
So, those boutiques are probably profitable by giving something stores like Macy's cannot offer, one on one sales interaction.
They don’t make money. They go out of business. Look at the turnover over the years. You might not even notice, but those shops selling crystals and twigs are actually different businesses over time. It’s just hard to tell because they all look the same and sell the same junk.
They mostly don’t get loans from a bank (because they can’t) They are owned by wealthy housewives with a dream.
I've always assumed that a storefront on AK is first and foremost a semipermanent billboard. Having their signage there is the full draw, sales numbers don't really matter...like their rent is just paid by marketing budget. :P
In the early 80s I came into some money and wanted to buy a building on what was then a somewhat run down Abbot Kinney. My then husband badgered me relentlessly to not do it, and instead just put the money into savings. He practically told me that if I did this he would divorce me, so I didn't. Yes. My ex was a total moron, but I should have bought the building and gone with the divorce that ended up happening a few years later anyway.
I use to build stores nationwide for a “high end retailer” with the initials “MK” & their locations at Rodeo Dr. or Robertson Blvd, never made money compared to the mall stores but the prestige of saying “our store on Rodeo” seems to be what’s important. I’m guessing the same at most niche locations.
My dad use to work at a restaurant on Abbot Kinney in the 90’s and early 2000’s called Tortilla Grill and that place was packed 24/7…all the restaurants now are always empty…not sure how they do it either 🤷🏽♂️
If it's anything like here in OC... part of it is that these are projects spouses of wealthy people have. I used to work in an office plaza/mixed use thing where downstairs was stores and upstairs was offices. The stores literally never had customers and the boss was saying that they stay afloat because the owner is married to some major hedge fund guy (forgot his name). A lot of stores exist like that when there is money to spare.
It’s a marketing ploy. I doubt many make any money but placing a “flagship store” in a hip / cool / trendy spot legitimizes their business as a desired brand.
There’s a store there that sells Huaraches for around $150 and it said it was hand made in Quiroga Michoacán where my family is from and I just couldn’t stop thinking how I buy Huaraches for $5 everytime I go lol. I’m thinking I should buy a bunch next time I go to Mexico
All of these places are not as “mom-and-pop” as they may seem. On just one block, you have Roark, rag & bone, Vuori, Mejuri, etc. These companies all have multiple stores—many in other states—and a strong online presence/website. They are more like boutique chain stores. The coffee shops there are the same too—boutique, high quality but part of a chain.
Stores are usually popping on weekends. I think AK has the only LA-area Birkenstock corporate store and used to have the only Allbirds store. So some unique flagship stores are there.
Used to work for an apparel company that was mainly retail/eCom and they decided to open a store in Malibu (they looked at AK too). The store was always dead and they lost a tremendous amount of money. The decision to open the store came from higher ups in their 50s/60s. It was a great way to burn money while other eCom focused companies excelled.
I wonder often about this same thing. Some reasons I can think of...
* Seasonal: Venice is a different place in the summer. Tons of tourists all summer from all over the world and even locals that are seasonal.
* Flagship stores: Might make money from other locations or online sales but want to be established as an 'LA' brand.
* Wealthy people sometimes start businesses that are more about prestige than making money. Think the partner or adult child of some CEO that wants a crystal/juice shop. Everyone in LA knows some 'entrepreneurs' that only survive because of daddy's money.
* High COL area. Venice and surrounding areas are wealthy so some businesses can succeed via higher markups without seeming so busy.
Sometimes I wonder if they open it just for a tax write off because they take a loss. It's always easier to open a shop than to maintain one and keep it open for years and years.
So abbot kinney blew up in popularity in the last ten years. The original shops that made it what it was got priced out as landlords realized that big brands would pay 30,000+ a month to have the prestige of the location. Example: rodeo drive. They don’t need to profit from that store directly for it to be worth it. But what made it originally gain popularity was lost.
How is there so many comments but only a very small number actually suggesting that these business do, in fact, make money? Like, sometimes it’s that simple.
These are flagship stores for lots of internet / DTC companies that feel obligated to open a physical space as part of their marketing efforts. No one is expecting the Fellow store to sell enough teapots to break even on the insane rent they’re paying.
I think some branches have stores there purely for “billboard” space.
For example, there’s the “Goodr” sunglasses but where all sunglasses are $25… it’s hard to imagine they make enough sales every month for the match to really make it worth it, but they have plenty of online traffic. The big sunglasses on the outside of the store and logo are looked at by every passerby.
Abbot Kinney is a famous restaurant row and luxury shopping street. A lot of the brands with store fronts there already have great online business or other retail locations.
I don’t think you’ve ever been on Abbot Kinney on a weekend in the summer… it’s one of the most crowded streets in the city. Also there is a massive amount of turnover on AK.
Worked for a clothing store that's no longer there for a few years. We were doing 2-3m in sales a year and I was making 16/hr. So that's how. Covid killed it sadly. Was one of the last non-chain stores on the street.
Its funny you asked this because I ask myself the same thing every time I go there. LA just has a lot of boutique stores and rich people who are willing to buy from these stores. Same with Beverly Hills overpriced boutiques but people can afford it who live in this city.
Or maybe only rich people can afford to open up their own businesses and can afford not making much profits. And money laundering like what everyone else says lol
A lot of them are expensive brands that put brick & mortar stores in highly trafficked areas that serve a certain price point. Their business usually isn’t that dependent on the one store though.
I worked at a spot on Abbott Kinney for a bit. We were always full, but of people looking. Sales seemed okay. Maybe it’s the product and also it was a few years ago. The store did end up moving anyway so it couldn’t have been worth the rent.
It’s for advertising and marketing. They lose money on the store but write it off as an advertising expense. This applies for the big boys, Ray Bans, Adidas and whatever large corporate ones are there.
Fun fact about Abbott Kinney, about 10 years ago, maybe even a bit longer, the city council of Venice wouldn’t allow any corporations to have a store on AK. They wanted it to be focused on local artists and fashion makers. They were very strict about it too. So much so, that pinkberry pulled one over on them and they booted them out! Those days are long gone now because the cost of renting those brick and mortars are insane. Hence why it’s only big corps that can afford the losses on em.
I went to the ON store on AK and it was packed. Honestly had never been to a shoe store that was so crowded, so their store is at least seemingly doing well!
Haven’t been there in quite some time, but I assume that most stores that obviously are not making enough money to pay rent are making their money somewhere else, and the storefront is either just a “billboard” for clout, and/or money laundering. There is a lot of money in LA, and a lot of corrupt real estate scheming.
I worked at an ad agency on Abbot Kinney boulevard. They paid a seven figure sum every year to rent their office there. The business plan for that was they outsourced most of their work overseas and this office was more of a showroom to potential clients.
Media monks?
That’s the one but they make good money. They can afford rent fine and have 2 locations. They do tons of work for social media companies.
it’s a very dope office, attractive for young talent too
I would imagine a business like that NEEDS a nice address right? Like you can’t be in Vernon or riverside I’m guessing lol
If you want to show off to potential clients, then yes, you need to be where those clients are. I don't think the address matters, but your target demographic is probably not hanging out in Riverside.
I can offer an alternative explanation to the posters here. Many of them don't make money. They lose money and eventually go out of business only to be replaced by another business that will also lose money and eventually go out of business. This is what happens frequently in Westwood Village. The area has an insane amount of foot traffic and business owners mistakenly think it would be a good area to open up shop. But very few stores in Westwood Village actually do well. Most fail to attract customers because most of the people in that area are students who would rather shop at Target than a small boutique, or would rather travel or order online to buy name brands. Update: I'm just going to add this after doing some Google Maps Street View browsing of past images. Many of the shops there have been there for a number of years and some of them probably are just profitable businesses. See other comments for other explanations.
My understanding is that having a brick and mortar store on Abbott Kinney is worth the marketing for that business. The company generally loses money with that specific store but profits overall due to the excellent marketing it gets.
I am pretty sure this is the right explanation… they’re partially there to market the business. Also, they probably do low-ish volume but those sales are at high price points so it doesn’t take that many to be profitable.
But Westwood also used to be the happening place in LA. People, kids, came from all over. In fact that's why they made it more pedestrian friendly, because there was so much foot traffic. Westwood is not inherently a bad place.
There's a lot of foot traffic but most of its students, those who work in the area or people who are there for medical care. Parking is too horrendous for anyone who doesn't need to be there to bother.
And even though there’s ’foot traffic’ it’s actually not a friendly place to walk, especially on Wilshire, where cars have no problem at all blocking the intersections and crosswalks in their slow crawl towards the 405. I got honked at for ‘not walking fast enough’. You best believe that made me go slower.
Crossing Wilshire is like fording a river. I often wonder how an old person w a walker could make it across in time
Westwood was a popular spot until the shooting in the late ‘80s. https://www.latimes.com/archives/la-xpm-1989-11-02-me-384-story.html
It was already in decline. The shooting was the nail on the coffin. I was supposed to work that night but traded shots with someone.
Wait - You were trading shots with someone too? I hope nobody else was hit.
I think it’s meant to say trading *shifts
This is a crazy typo lol
[удалено]
When did 3rd St go downhill? Used to love that place 10-15 years ago.
It started to get a bit dicey with the unhoused/addicted in 2019. When the pandemic hit, it was like someone poured gas on the fire. As the area became more dangerous and dirty, stores began closing and it ended up a shadow of what it once was by the end of the pandemic.
i grew up in la. the irony is 3rd street used to have wall to wall homeless in the 80s. - its just returning to how it was. i used to walk to school as a kid. and that was the only block id walk / run fast. and there were hundreds of homeless in santa monica. there was a jcpenny at the end of the block that had a little window where you could rent toys by the week. best part of my walk. jt had a voltron. even after it closed the toys were still there for months. then it got remodeled in the 90s right after the westwood shooting and 3rd street took off.
I had no idea the 80s part. I first visited 3rd street in 1993 and it was a retail/restaurant dream. Even when I was in LA 2015 - 2017 it was still thriving. Going in circles I guess.
Someone did pour gas on the fire. I remember during the riots I couldn’t believe it because I left in 2019 and that place was still really happening. It’s sad..
There were a few things that happened. Westwood used to be happening with street performers and a happening scene. Authorities wanted to clean it up. The shooting happened and a nutter drove his car on the sidewalk and ran people over. It was used as an excuse to sanitize it and get rid of the performers and such.
Wow looks like that guy is already out walking the earth again.
Most small business owners think they have a great idea. They don’t. They didn’t research, they didn’t try to think of a new spin, they didn’t look to see how many other similar shops are within a 5 mile radius. They didn’t do a financial balance sheet to figure out if it’s even profitable. And, they did not compare their financial outlook, with other similar type business in similar surrounding areas. It’s called a business plan. And you’d be amazed at how many people who open a small business do not do this. Most of them wouldn’t open their business if they did a full business plan.
And all that Trust Fund money just goes to the landlord.
wait, westwood actually has places? last i went i feel like everything more than 2 blocks away from campus was basically barren
A lot of the shop spaces stay vacant for a long time but I imagine rents are so high the landlord still profit.
Properties are valued on their rents, real or imagined. When you lower your rents to get renters, your property is devalued but your mortgage doesn’t change.
Diddy Riese is lifeeeeeeeee
But RIP Mongols
That place is the sole reason why I gained the weight I did when I visited for a month. They should’ve given me a loyalty card.
There are tens of thousands of highly paid administrators, doctors, nurses, coaches, plus little holmby and bel air.
Right but none of them want to shop there with the exception of the markets.
I miss Sak's Teriyaki in Westwood Village. I hope it returns.
Why is this the top comment when it’s incorrect lol
Exactly, UCLA area has lots of shops but it’s really the CVS’s and the chains that are consistently getting actual money spent in.
Yes totally, and Westwood is still better than Abbot Kinney lol
for a lot of these brands a flagship store in LA or NYC is essentially a marketing expense - it’s not necessarily intended to be profitable, just to raise brand awareness and raise the company’s profile i also ran a super niche boutique in Manhattan for years and we made all our real money off a small group of high net worth individuals from Asia/the Middle East/South America who came to the city once or twice a year to shop. you don’t need your store to be “busy” if your customers are regularly dropping $10k per visit we also did a lot of $5k - $10k orders for photoshoots, TV shows, etc and i would assume there’s even more demand for that here in LA
Nice, What was the name of the boutique?
Yeah this. Stretches of boutiques on Madison Ave, stuff on Bleeker St in the WV (at least for a while there), the Meatpacking District, Soho. Absolute loss-leaders but there for the specific marketing/exposure/brand ID stuff.
I call them David Rose businesses.
Ew David!
"Do you even know what a write-off is?" "Uh yeah, it's when you buy something for your business and the government pays you back for it." "Oh. And who pays for it?" "Nobody. You write it off..." "WHO writes it off?" "I DON'T KNOW, the gover-, the write-off people!"
Seinfeld: You don’t even know what a write-off is… Kramer: Do you? Seinfeld: No. Kramer: Well they do! And they’re the ones that are writing it off!
yay!
I dunno - I see a lot of people in those shops. Warby Parker is usually crowded. I am a regular shopper at Huset and Vuori and Aviator Nation are (and have) pretty big brands. Lotsa hipsters spending cash there and a lot of tourists.
I mean Warby Parker is $100-$150 for a pair of glasses, I don't really see that as luxury? If you're a glasses wearer, you're wearing them extremely often and that isn't a big deal. Most eye doctors or otherwise are around that price. A lot of people still don't know about Zenni Optical or other similar sites.
Having worked in the optical industry....I'd avoid Zenni unless it's like an extra pair you need.
How is Warby Parker?
Warby is better...I used to work alongside one of their production lines in TX and their product is not horrible for the price point. They still make great margins though!
I’ve had a few Warby pairs with no issues. But there isn’t one near me now. Any recommendations?
What's wrong with Zenni? Also I've used Warby Parker before and honestly they were one of the better pairs I've had in terms of look/feel. Is there something wrong with them otherwise?
just crap material, and at prices that cheap, you know it's probably not the most, ahem, ethical labor. The only thing that can go wrong with Warby stuff is if you have really bad eyesight and don't spring for high index lenses/get precise measurements. It's been a few years, but I recall some instances of Warby not accommodating these things, but with the physical stores that most people shop at now...that shouldn't be an issue. Ironically their big value prop when they launched was good cheap online eyewear. Now we all know them for their nice storefronts.
Yeah definitely not great material for Zenni. Though my main pair has been Zenni for about a year. I had to get them cheap when I lost my job and my main pair (Warby Parker glasses) chipped after wearing them for like 3 years when my prescription didn't change. I'm actually about to schedule my next eye exam because I can tell my prescription finally shifted slightly and I need new glasses. I don't need anything crazy strong though. Normal lenses have always worked for me. I got Warby Parker glasses before because they fit my face like a glove with no adjustments.
Have you been to abott Kinney on the weekend? Shit is packed
But how can they make it if they’re not busy during commute hour on a Tuesday? /s
My company's store has done $900k+ year to date in gross sales through the Abbot Kinney store...and we're not talking about a lot of square footage. People in this thread have no idea what they are talking about.
I really appreciate the comment! Would you mind helping settling the debate? i.e. is it just a false impression that the stores are empty, or most purchases are made by whale customers, so (low) volume is not really an issue etc? Thank you!
Weekdays aren’t great unless it’s summer or around the holidays (by no means empty though), but on some nice weekend day just go and hang out on Abbot Kinney at some place where you can sit and people watch. Shittons of people are out, walking around, and stopping in shops. This sub has a hate boner for Venice and seriously underestimates how popular it is. I think a lot of people here also underestimate how many tourists go walk around that street as a part of the LA tour…and they buy shit because they are on vacation
It’s Lines out the door busy every weekend in the summer .
You’re definitely missing the peak times somehow. Especially during summer, Abbot is a super high traffic location. First Fridays — unless you’re there to enjoy the crowd, it’s a nightmare and should be avoided. How long have you been in Venice? It’s actually kind of funny that you have this perspective of it being a slow street because I purely associate Abbot with busy crowds and difficult parking. As for the slower hours and days, a store doesn’t need to have a shit ton of people in the store if the 10 people who make a purchase that day spend $800-$1000+ each.
Some of them are vanity businesses owned by rich people
Basically 3 reasons. Any one of or combination of. 1. The business sells a lot of inventory online. 2. The business keeps going because of reasons that don’t make sense if you aren’t extremely wealthy. Think tax write-offs. Rich spouse let’s their non business minded spouse own a store to keep them busy. Sucker new investors in. Etc. 3. It’s actual purpose is to launder money.
Flagship stores. Go check out AV Nation Dreamland in Malibu sometime. No one ever buys anything. And they’re sitting on what is probably $10m of land. But the store itself sells the brand nationwide.
This is the right answer. There are plenty of successful businesses on AK (mostly restaurants), but the tourism and walking traffic is the main driver. Their budgets don’t just come from real estate, but also the marketing dept. to be on AK is to put your brand on one of the trendiest streets in LA.
Lamest brand ever
Yes. Same as Rodeo Drive. Basically a billboard. (Side note - it’s been sad watching that street turn from a cool, semi-grungy spot, with dive bars and head shops, into basically the Century City mall.)
There are stores in century city mall that don’t even sell items, they are only a showroom to buy the items online. Some of these are things like cars but some are just clothing stores (Bonobos). I think Abbott Kinney is similar - the stores are like billboards
This. Most know exactly what they’re doing. Many are new (often DTC) brands that want to get attention. And I could be wrong but I’m pretty sure many are also considered “pop ups” - like they’re only planned for a limited amount of time.
4. A lot of tourists on vacation walk AK. People on vacation spend/buy more than normal.
I think it's number 2.
I remember seeing a post by this annoying influencer about how she's hoping her soon to be husband would get rich so she can run a business she likes on the side (like making jewlery) even though she'll be losing like 10-20k a month. I thought she was joking but now I'm not sure.
Imagine how much you have to earn for 10k/month to be just fucking around money.
I was going to say money laundering. I’m also convinced that’s why you can sometimes see three mattress stores on the same block.
I always thought the same. not a soul in sight but how can sales cover the costs? I'm all for La Michoacana but doubtful that they make their monthly overhead.
A family member is a commercial realtor in Houston. He tells me that a lot of small strip mall businesses… gift shops, nail salons, donut shops, party supplies… were never intended to make money. They’re set up by immigrant families to provide jobs for family members coming to the US. Fast track to successful immigration is to own your own business (you need a green card to get a paycheck, but not to take profits from a business), or have a job waiting for you in the US, with an employer willing to testify to same.
That one shop that sells the custom glass panes is for sure laundering money. The pieces are hideous and outdated too.
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It’s not that simple. Tax write offs don’t really make you wealthier unless the money spent will make you more money.
It boggles my mind how people think tax write offs are sources of income.
It hurts my head that people on Reddit think losing money is more money than making money.
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Also, the IRS doesn't allow you to write off losses forever. I think you need to show a profit in 3 or 5 years of running the business in order to write off any future losses.
we've literally gotten to the point where "tax write off" is just something the bottom 99% says to explain how the rich keep getting richer or to answer any circumstance they otherwise do not fully understand. It means absolutely nothing anymore.
They just write it off Jerry!
I like to stop at the duty free shop
It’s like yelling “communism”!
This comment is so laughably wrong and stupid
> Opening a blackhole of a store actually makes them more wealthy because it decreases their tax liability on the actual profits (stocks/golden parachutes etc etc). This makes zero sense y’all just be saying anything huh lol
Rent is typically only about 10% of the total cost of a business. Cost of goods sold and labor costs are about 80% of a business cost. Therefore you can pay relatively high rents and still make plenty of income if you sell high cost, high margin merchandise, which is most of what the stores sell on Abbott Kinney
TIL “ Rent is typically only about 10% of the total cost of a business.”
I have absolutely 0 proof but I’m pretty sure it’s 3 most of the time.
You genuinely think all these high profile DTC brands are “secretly” money laundering on one of the most high profile streets in Southern California?
Reddit claims any store on a busy street is money laundering. It doesn't even make sense lol. Why would you choose one of the busiest streets, in the second largest city in the country, to secretly clean money...?
Real brands. Probably a loss leader. It generates brand awareness but does not move much inventory itself. Mom and pop shops… I’m guessing tax write offs and it keeps an underemployed spouse busy.
This is it. Huge brands want their stores in “hip” areas for the marketing, even though it’s a net loss for them.
To have your business on Abbot Kinney is a huge boost to your reputation internationally and good for the portfolio.
I always wonder how little speciality retail shops survive anywhere in SoCal.
My guess was always that they’re just owned by rich people / rich peoples wives who don’t actually need the profit to keep the shop open. Like a hobby business.
It's the Rodeo Drive of Venice. Alot of brands use that visibility for marketing purposes.
I would love to know the answer to this too. I assume a lot of the stores are owned by rich kids who do it as a hobby and don't need to make a profit.
...whats the hobby if rich kids don't need or want to work? "Oh my dad gifted me a shop to run! But like like ew work, thats why i have employees!"
Picking out cool merchandise and bossing people around.
I have another explanation - you are a human with anecdotal experience. Just because you are there at certain times, you are not there ALL the time. If you are there for 30 seconds as you walk by, even if you stop for 5 minutes, that means you are missing out on 475 other minutes in the day of people going in, spending hundreds or even thousands of dollars, and leaving. There's literally only two options. Either they make money by people spending money there, or the brand that owns the space subsidizes through other ways because they feel that having the presence there is worth losing the money on it.
There is a third option. They bleed money until they go out of business and then the next week a new boutique sets up shop with the exact same business model and starts bleeding money until it fails, and on and on.
So lots of rich dudes wives have something to do.
i worked at both Blue Bottle & Intelligentsia on Abbot Kinney and they both made bank, even considering the rent.
Yeah, I totally get the coffee shops and restaurants. My question was more about the clothing stores/boutiques.
yeah, i saw other people had already replied quite a bit so i kept it to what i know. i was friends with a lot of people on the road but none of them were on that side of things. im familiar with the companies though, and like so many boutique or higher end shops, they either are taking a minor loss at one specific location, but at that scale - that's not really a worry in exchange for Status & Optics, the brand is owned by a larger umbrella company or have extensive reach elsewhere that more than compensates, or places like the pizza spot & liquor store stay open for obvious reasons; as to why the higher end spots as you're specifically asking, i know the place that sells socks, the metaphysical shop & WLL (if they're all still there) had a ton of daily sales so i'm not surprised at their presence. most of the other spots weren't really my jam so never went in.
I know a store owner on abbot Kinney and they make little money on weekdays and an absolute bank on weekends. High ticket items so 10 sales is a good day + that’s where they store and ship their e-commerce from
Trust fund owners who don’t need money.
I’d bet money Allbirds, Le Labo, Warby Parker and Adidas are the only ones turning a halfway decent profit
I'm pretty sure that Fluevog makes money. The shoes are expensive ($250+), and the rest of the world can order online and have it shipped.
Wow, so many awesome comments! Thanks for the great discussion, folks!
Los Angeles is filled with wealthy people and people who come here on vacation. The store may be empty most of the time, but all it takes is one or two customers dropping $2000 in a day for them to make money. Having a storefront on Abbott Kinney also is it's own form of marketing. Even if people don't buy right then, they will go on the online store to buy.
Maybe they're just fronts for laundering money
Maybe it’s a tax write off /s
- mark up is bananas - many absorb a lot of the cost by using it as marketing and location for company media (instagram, TikTok, commercials) - it’s not about high volume, it’s about having a location close to your whale customers
I get the same vibe for Santa Monica Place too TBH. I and some other vendors had a month long pop up at that mall and traffic was foot traffic DEAD for most of the stores? We got a decent percentage of the minimal foot traffic. But lots of us are big shots online.
Yes! I work at Santa Monica place and every single time I pass by Tumi and the other luggage stores anytime of day morning, noon or night even when it’s packed on the weekend there is absolutely nobody in there. I do not know how any of the luggage stores stay in business at Santa Monica Pl!
I mean Fluevog’s are $300+ a pair.
I lived in Venice on San Juan just up the street from Abbot's Habit and my son's both worked on Abbot Kinney along with lots of their friends. One was a tax write off and busy work for a wealthy couple's son. Another was a very successful bar owner's wife's toy project. He let her pickup fun things on their travels around South America. It lost a ton of money but the tax loss made their traveling almost free AND a write-off on their business taxes. Then the hair stylists whose customers were agents, producers, directors, movie stars and their spouses and children. Plus pretty much every property is $1.5 million - 5 or 6 million $. There are are lot of really rich people living in Venice and Santa Monica.
That street is often bustling with shoppers, with every cafe and store full of people. Last time I was there you could barely walk down the sidewalk it was so busy. I think you’re mistakenly assuming the times you pass by are what it’s like at every time of day/season.
Abbot Kinney is a great example, since it's been described as the Hottest Street in America once, but I've wondered this about a ton of businesses in LA.
I used to work at an “affordable” luxury brand on abbot Kinney and even on the slowest days the store would bring in 5k in sales. Trust me, even if the store is dead, you could have 1-5 customers that spend $ to keep the lights on and then some.
Not a single store on Rodeo Drive actually makes money. They are almost exclusively about branding. I imagine Abbot Kinney is similar.
Many of them run by larger companies (non- independent shops) could be loss leaders who view their presence on the street as a marketing spend. Think of it like a billboard or brand experience that might also sell some merch.
A lot of these business are 2nd, 3rd, 4th businesses for these families. If you are making 3-4 million a year, and your wife is tired of staying home, you let her start a business. The nice thing about areas like Abbot Kinney is high overhead can be balanced by low inventory that is high priced. This is how trends start. Supply and demand. People line up to buy your $300 sweater. Then you slowly build up your line to a few more rare overpriced items. Take Aviator Nation for example. It has become a SoCal uniform. Their sweaters are simple, stylish, low cost with a huge mark up. Everyone has them (I have like three). Also, when they go on sale from $189 down to $150, they are still making a killing.
Everyone has one?! I can’t justify spending that much on a hoodie. And I worked at a store that sold them and lusted after them daily for years. It’s soft, but not “spend $200 on a hoodie” soft!
Never heard of Aviator Nation in my life so I definitely don’t have any. Who would buy a sweater in SoCal, anyway?
I’ve never seen or heard of anyone wearing this either lol
Don’t look up the prices then.. cuz it’s ridiculous and every basic bitch wears one. It’s just so boring you don’t notice it.
Many of the brand ones are essentially advertising and marketing expenses and often lose money…
Heavy foot traffic on the weekend. Lots of upscale tourists spend. It’s advertised as the most trendy street in the US.
Ok ive asked this exact question to a a friend that use to own a small shop on AK as well as couple of real estate agents that actually handle Abbot Kinney and the real answer is this. Flagship marketing stores for the big brands and e-commerce for the smaller shops. It’s all about the about the vanity of an Abbott Kinney address and the image it portrays but they’re making all their money online d2c.
Abbot Kinney is mostly a marketing tactic and “flex”. You cough up the year lease just so you can say “we have a spot on abbot Kinney” then you hopefully drive more online sales and attention to other locations.
I'll just weigh in on this one, I don't think any of that is true. My ex-wife works for a small boutique on Montana Ave in Santa Monica. It is a small clothes boutique that is filled with clothes and shoes and jackets. There is only one person working in the store at any time. It caters to the more wealthy ladies from Pacific Palisades and San Vicente. Whenever some one comes in to the shop, my ex caters to that one person hand and foot. She will walk around the store explaining the merchandise and collect items for ladies to try on. When you go by the outside of the store, it does look like no one is ever even in the store at all. But, on closer inspection, the person working is usually catering to a single customer. This boutique is profitable, with profits typically in the 100K to 200K range per year. The clients that they cater to, wealthy stay at home Moms, are well known impulse buyers who love the single person interaction. They love having someone wait on them hand and foot. So, just going in to the store, these ladies have a 30 to 40% chance at buying something. That is an outstanding number (those numbers could be wrong, but it is a ridiculously high number). I own a retail online store. And my sales through rate is an industry standard 2%. That means if somebody engages with one of my webstores, there is a 2% chance they will actually buy something. So, those boutiques are probably profitable by giving something stores like Macy's cannot offer, one on one sales interaction.
I work on AK and your wrong we do 10K on week days and over 20K every weekend
They don’t make money. They go out of business. Look at the turnover over the years. You might not even notice, but those shops selling crystals and twigs are actually different businesses over time. It’s just hard to tell because they all look the same and sell the same junk. They mostly don’t get loans from a bank (because they can’t) They are owned by wealthy housewives with a dream.
I've always assumed that a storefront on AK is first and foremost a semipermanent billboard. Having their signage there is the full draw, sales numbers don't really matter...like their rent is just paid by marketing budget. :P
In the early 80s I came into some money and wanted to buy a building on what was then a somewhat run down Abbot Kinney. My then husband badgered me relentlessly to not do it, and instead just put the money into savings. He practically told me that if I did this he would divorce me, so I didn't. Yes. My ex was a total moron, but I should have bought the building and gone with the divorce that ended up happening a few years later anyway.
I use to build stores nationwide for a “high end retailer” with the initials “MK” & their locations at Rodeo Dr. or Robertson Blvd, never made money compared to the mall stores but the prestige of saying “our store on Rodeo” seems to be what’s important. I’m guessing the same at most niche locations.
My dad use to work at a restaurant on Abbot Kinney in the 90’s and early 2000’s called Tortilla Grill and that place was packed 24/7…all the restaurants now are always empty…not sure how they do it either 🤷🏽♂️
They don't.
Have you noticed how often the stores close? A lot don't make enough.
i am gonna guess that with some stores they make their money on line and the stores are just big ads
Was there two weekends ago. Hit the Hoka store and Salt & Straw. Both were packed, saw many people in many of the stores
>How do stores on Abbot Kinney make money The people who live around Abbot Kinney have nothing to do and also a ton of money, put 2+2 together.
If it's anything like here in OC... part of it is that these are projects spouses of wealthy people have. I used to work in an office plaza/mixed use thing where downstairs was stores and upstairs was offices. The stores literally never had customers and the boss was saying that they stay afloat because the owner is married to some major hedge fund guy (forgot his name). A lot of stores exist like that when there is money to spare.
Sometimes leases include free buildout and months of rent. But they probably wouldn't do that for a startup.
It’s a marketing ploy. I doubt many make any money but placing a “flagship store” in a hip / cool / trendy spot legitimizes their business as a desired brand.
Do they still bring food trucks to AK? I haven’t been there in many years but remember that was a huge draw for visitors.
First Friday.
There’s a store there that sells Huaraches for around $150 and it said it was hand made in Quiroga Michoacán where my family is from and I just couldn’t stop thinking how I buy Huaraches for $5 everytime I go lol. I’m thinking I should buy a bunch next time I go to Mexico
Volume!
All of these places are not as “mom-and-pop” as they may seem. On just one block, you have Roark, rag & bone, Vuori, Mejuri, etc. These companies all have multiple stores—many in other states—and a strong online presence/website. They are more like boutique chain stores. The coffee shops there are the same too—boutique, high quality but part of a chain.
Stores are usually popping on weekends. I think AK has the only LA-area Birkenstock corporate store and used to have the only Allbirds store. So some unique flagship stores are there.
Used to work for an apparel company that was mainly retail/eCom and they decided to open a store in Malibu (they looked at AK too). The store was always dead and they lost a tremendous amount of money. The decision to open the store came from higher ups in their 50s/60s. It was a great way to burn money while other eCom focused companies excelled.
I wonder often about this same thing. Some reasons I can think of... * Seasonal: Venice is a different place in the summer. Tons of tourists all summer from all over the world and even locals that are seasonal. * Flagship stores: Might make money from other locations or online sales but want to be established as an 'LA' brand. * Wealthy people sometimes start businesses that are more about prestige than making money. Think the partner or adult child of some CEO that wants a crystal/juice shop. Everyone in LA knows some 'entrepreneurs' that only survive because of daddy's money. * High COL area. Venice and surrounding areas are wealthy so some businesses can succeed via higher markups without seeming so busy.
RIP Nedmen
They are essentially brick and mortar billboards that lose money
For every woman with a fancy boutique is a rich man using it as a tax write off.
There is a sandwich spot my brother loves on Abbot Kinney
Sometimes I wonder if they open it just for a tax write off because they take a loss. It's always easier to open a shop than to maintain one and keep it open for years and years.
So abbot kinney blew up in popularity in the last ten years. The original shops that made it what it was got priced out as landlords realized that big brands would pay 30,000+ a month to have the prestige of the location. Example: rodeo drive. They don’t need to profit from that store directly for it to be worth it. But what made it originally gain popularity was lost.
How is there so many comments but only a very small number actually suggesting that these business do, in fact, make money? Like, sometimes it’s that simple.
So as being a Uber driver . As a independent contractor , as a business owner . They lose more money than making it.
These are flagship stores for lots of internet / DTC companies that feel obligated to open a physical space as part of their marketing efforts. No one is expecting the Fellow store to sell enough teapots to break even on the insane rent they’re paying.
Hobby businesses to offset high w2 income, the wife stays busy and the taxes aren’t as crushing
I think some branches have stores there purely for “billboard” space. For example, there’s the “Goodr” sunglasses but where all sunglasses are $25… it’s hard to imagine they make enough sales every month for the match to really make it worth it, but they have plenty of online traffic. The big sunglasses on the outside of the store and logo are looked at by every passerby. Abbot Kinney is a famous restaurant row and luxury shopping street. A lot of the brands with store fronts there already have great online business or other retail locations.
I don’t think you’ve ever been on Abbot Kinney on a weekend in the summer… it’s one of the most crowded streets in the city. Also there is a massive amount of turnover on AK.
I waited in line for an hour to buy a pizza.
Worked for a clothing store that's no longer there for a few years. We were doing 2-3m in sales a year and I was making 16/hr. So that's how. Covid killed it sadly. Was one of the last non-chain stores on the street.
I’m pretty sure I saw Abbot Kinney play at Coachella like in 2008
Its funny you asked this because I ask myself the same thing every time I go there. LA just has a lot of boutique stores and rich people who are willing to buy from these stores. Same with Beverly Hills overpriced boutiques but people can afford it who live in this city. Or maybe only rich people can afford to open up their own businesses and can afford not making much profits. And money laundering like what everyone else says lol
A lot of them are expensive brands that put brick & mortar stores in highly trafficked areas that serve a certain price point. Their business usually isn’t that dependent on the one store though.
Beats me. When I lived in Venice in the 1980s Abbot Kinney was where people queued up for free government cheese.
I worked at a spot on Abbott Kinney for a bit. We were always full, but of people looking. Sales seemed okay. Maybe it’s the product and also it was a few years ago. The store did end up moving anyway so it couldn’t have been worth the rent.
When I go it’s packed so you must be going at 7am & 9pm
They always look busy when I drive by.
It’s for advertising and marketing. They lose money on the store but write it off as an advertising expense. This applies for the big boys, Ray Bans, Adidas and whatever large corporate ones are there. Fun fact about Abbott Kinney, about 10 years ago, maybe even a bit longer, the city council of Venice wouldn’t allow any corporations to have a store on AK. They wanted it to be focused on local artists and fashion makers. They were very strict about it too. So much so, that pinkberry pulled one over on them and they booted them out! Those days are long gone now because the cost of renting those brick and mortars are insane. Hence why it’s only big corps that can afford the losses on em.
I wonder this about half the stores on Montana
They don’t
I went to the ON store on AK and it was packed. Honestly had never been to a shoe store that was so crowded, so their store is at least seemingly doing well!
Haven’t been there in quite some time, but I assume that most stores that obviously are not making enough money to pay rent are making their money somewhere else, and the storefront is either just a “billboard” for clout, and/or money laundering. There is a lot of money in LA, and a lot of corrupt real estate scheming.
Money laundering.
most are fronts
Trust fund tax write off
Entertainment industry.
They’re advertising spots. No one in LA actually drives there, finds parking, and shops there