PARIS – Chanel said Wednesday it has bought the building housing its boutique on Avenue Montaigne for an undisclosed sum, as leading luxury brands continue to snap up real estate in a bid to secure prime locations for their brands.
The building at 42 Avenue Montaigne is home to a fashion, watches and fine jewelry boutique and offices, the French luxury brand said in a statement. Chanel has been in the building since 1983.
It was the target of a high-profile smash-and-grab robbery in June, during which robbers rammed the windows of the boutique with a vehicle.
The 6,500-square-foot Chanel store covers two floors and is designed to accommodate VIP clients with private salons located on the first floor. The building spans seven floors and three basement levels.
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A protected property, it was built in 1965 by architects Roger Anger, Mario Heymann and Pierre Puccinelli, known for their creative approach using geometric plays, in this case a pleated bay window layout.
Announcing annual results in May, Chanel said it planned to ramp up capital expenditures by at least 50 percent this year from a record $1.23 billion in 2023.
“We will be really on the offensive in terms of possible real estate acquisitions, but we will do them at the right time at the right price,” chief financial officer Philippe Blondiaux told WWD at the time.
Chanel has doubled the size of its distribution network in the last five years. In 2024, it increased its network to 612 locations, with 47 net openings.
“The acquisition of 42 Avenue Montaigne follows other real estate purchases in 2023 in Paris and across other cities including London and Biarritz, important in Chanel’s history and heritage,” the brand said on Wednesday.
The battle for real estate in Paris has been compared to a game of Monopoly, with Avenue Montaigne one of its most prized locations.
Among others, LVMH Moët Hennessy Louis Vuitton in 2022 acquired the building housing its headquarters at number 22, while rival group Kering has bought the former home of the Canadian embassy across the street at number 35.
