Chanel to Open the Largest Boutique Globally
French Giant Pays Over $100M for Additional Property on Rodeo Drive
French luxury brand Chanel is set to open the most extensive boutique in the world on the famed Rodeo Drive in Beverly Hills, California. After almost a decade of anticipation, construction will finally be complete in 2023, and Chanel will unveil its new multi-level wonderland to the public. It will span two buildings with a combine 24,000+ square feet of space dedicated to Chanel's Women's ready-to-wear, leather-goods, and fashion accessories.
This move comes from increased demand from tourists and locals who pack the existing Chanel store on Rodeo Drive - currently operating a temp boutique on Wilshire Blvd since 2020.
The three images below are renderings1 of the new Chanel boutique on Rodeo Drive:
The store retail staff will be approximately 100+, including management, sales, and support team job types. The current store currently produces $100M+ in annual revenues. I assume the new store will generate closer to $200M by its second full year. In retail of this magnitude, the organizational structure can have the following roles:
The store's watches and fine jewelry department will operate somewhat as a shop-in-shop as the business operations are unique and require different skills + understanding of the W&J industry + customer sentiment, and behavior. Also, the department's footprint will occupy much of the first floor. The organizational structure will look something like the following:
There will also probably be other corporate support functions specifically assigned to this store, such as:
HR Business Partner + admin personnel
Training and Development Manager
Visual Merchandising Manager + assistants
Chanel's flagship Beverly Hills location has been a tourist staple since it opened in 1985, drawing visitors from all over the world who come to snap selfies in front of the iconic storefront and browse the luxury wares inside. In 2013, Chanel purchased the Lladro building next door for an estimated $100 million intending to expand its Rodeo Drive footprint. Then in 2015, the company purchased their 11,500-square-foot store at 400 N. Rodeo Drive for $152 million.
The architecture firm Peter Marino was commissioned to design the new boutique. Peter Marino is widely known for developing luxury retail stores for global luxury brands. Peter Marino also designed the previous Chanel boutique on Rodeo Drive; his inspiration was from the Chanel No 5 bottle.
Sources say that a floor will be dedicated to Chanel's newest collection, a complete Men's offering, marking the first time a full range of Men's products will be available for customers. The first floor of the previous Chanel boutique at 400 N Rodeo Drive will display watches and fine jewelry. At the same time, the Women's and Men's collections will span across both buildings.
The images below are of the former Lladro flagship store:2
Chanel is confident in customers' appetite for luxury goods in the United States. The company has taken a similar approach to ultra-valuable retail space in other local markets where it has a presence, purchasing buildings outright rather than leasing space. With luxury goods sales still strong in the U.S., Chanel may be poised to capitalize on this trend with its increased physical presence in America's most prestigious shopping districts. The new boutique on Rodeo Drive will be one of the largest stores in Chanel's portfolio. With its prime location and luxurious amenities, the new two-story wonderland will surely be a hit with shoppers worldwide.
Company Profile
Gabrielle Chanel opens her first boutique in Deauville. From 1913, she begins to sell a line of sportswear made of jersey, a material that was previously used to make men’s underwear. This approach revolutionized fashion and women's relationships with their bodies. It was an instant success. Mademoiselle Chanel, a pioneer, whose lifestyle and multiple facets forged the values of the House she founded, and who remains an inspiration for all women.3
Store Info
Tuesday-Saturday 11am-6pm Sunday 12pm-5pm
Address 400 N Rodeo Drive, Beverly Hills, CA 90212 Contact 310.278.550
Temp location: 9560 Wilshire Blvd Beverly Hills, CA 90212
Images: Beverly Hills Planning Commission
Images: Gruen Associates
https://www.chanel.com/us/about-chanel/the-founder/