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Chanel has purchased a building on Avenue Montaigne, one of Paris’ premier shopping destinations, as European luxury brands race to secure prime real estate for their flagship boutiques.
Synonymous with timeless elegance, Chanel has made a strategic purchase on Avenue Montaigne. The property near the Champs-Élysées is a significant addition to the brand’s Parisian holdings.
The fashion giant has consolidated its position on Avenue Montaigne, purchasing the building that houses one of its boutiques. Confidential sources say the transaction involved Italian insurer Generali as the seller.
Expanding on its real estate portfolio, Chanel has acquired 42 Avenue Montaigne. This follows similar purchases made in Paris and other cities last year, including London and Biarritz.
Store ownership can hedge against rising rental costs and make the substantial investments required to create premium shopping experiences more worthwhile. Luxury players, such as LVMH, have been instrumental in redefining the boutique concept by incorporating art and dining elements.
LVMH unveiled its Christian Dior flagship store at 30 Avenue Montaigne two years ago. This impressive boutique boasts a museum, restaurant, guest suite, and gardens. The renowned architect Peter Marino, who has also worked on Chanel projects, oversaw the store’s design.
According to LVMH’s CFO, Jean-Jacques Guiony, the company would not have invested in a flagship store like the Dior boutique at 30 Avenue Montaigne if it had rented the location. Owning the property allows LVMH to have a long-term vision for the space.
Avenue Montaigne is a renowned luxury shopping destination, drawing shoppers worldwide. Some visitors stay at the prestigious Plaza Athénée Hotel, where nightly rates exceed €2,500 ($2,780).
According to a company spokesperson, Chanel’s real estate portfolio is valued at over $7 billion, with a substantial portion acquired over the past decade. The brand plans to renovate the 42 Avenue Montaigne boutique starting in 2029.
By owning its properties, Chanel can ensure that its boutiques always align with the brand’s vision. This allows for greater control over the customer journey, from when they enter the store to when they leave with their purchase. It’s a strategy that has proven successful for Chanel and will continue to drive the brand’s success in the years to come.
