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The encyclopedia · Strategy & Leadership · Strategic decision · 2023

Ron Herman closed all its U.S. stores in 2023 — a 47-year Melrose legend ends

L.A.'s iconic boutique Ron Herman shut its Melrose flagship in Dec 2023 after Malibu and Brentwood closed — only Honolulu and e-commerce remain.

Ron Herman · 2023-12-23

What happened

On Dec. 23, 2023, Ron Herman closed the two-story, 14,000-square-foot store at 8100 Melrose Avenue that had anchored Los Angeles fashion retail since 1976. The Malibu Country Mart outpost had already shut earlier in the year, and the Brentwood store on San Vicente Boulevard closed in October. In under 12 months, the retailer that helped launch J Brand, Trina Turk and Earl Jean went from three Los Angeles stores to none.

The store began in 1976 as a 600-square-foot shop inside the Melrose compound of Fred Segal — Herman's uncle, who had opened his first boutique there in 1961 and made Herman company president in 1971. For decades it was the first place in town to stock emerging Southern California labels, drawing celebrities and fashionistas with a curation model that made it a brand-discovery engine.

In 2019, Tokyo's Sazaby League — which had licensed the Ron Herman name for 14 years — bought the business outright. On the closures, the company said it had "made a strategic decision to reshape its U.S. operations," scaling back its retail footprint "with sights set on renewing its dynamic digital and physical presence in California and abroad." A major sale ran at the Melrose store, and afterward 13 Ron Herman stores and 7 RHC stores remained in Japan, with a single Ron Herman shop in Honolulu that had opened in February 2023.

Why it happened

  • The store's value was discovering brands, and that role moved online: social media let young labels reach customers directly, so the curation that justified Melrose rents no longer drew traffic.
  • The Japanese owner decided the U.S. footprint was not worth carrying: three Los Angeles stores paid prime rents and payroll while Japan's 20-plus stores carried the business.
  • Fourteen years of licensing and ownership never built a U.S. e-commerce channel or loyalty base, so when discovery moved online no digital business absorbed the closures.
What it costThree L.A. stores closed in a year; Honolulu shop remainscostly

The lesson

A store whose job is discovering brands must build the digital channel that job migrates to before it migrates — rent and payroll stay fixed while the job moves online.

Aftermath

Sazaby League said it would rebuild Ron Herman's U.S. presence as a blended digital and physical business, including third-party and private-label merchandise. Japan's 13 Ron Herman and 7 RHC stores and the Honolulu location continue to operate.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →