Chanel Shuts Seoul Boutique Over Gucci Pop-Up, Sparks Luxury Brand Clash

Chanel, a luxury fashion brand, shut down its outlet at South Korea's Galleria Department Store in Apgujeong-dong, Gangnam-gu, Seoul. The sudden closure was so unexpected that many were surprised.

However, it turned out that Chanel decided to do so due to a conflict with the department store. According to The Korea Herald, the French fashion house suspended its operations in Galleria because of the presence of its Italian rival, Gucci, within the area.

Chanel and Galleria's Conflict

It was reported that Chanel's closure was so abrupt that shoppers were unaware it had stopped the sales. Visitors to the boutique were said to have been turned away, and the brand said it had to close because of operational disruptions caused by Gucci, which set up its pop-up store.

"We closed the boutique because the department store proceeded to set up the upcoming pop-up, which will cause significant damage to the visibility and operational environment of our store," Korea Joongang Daily quoted Chanel Korea as saying. "The installation clearly violates the contract regarding the boutique's environment signed with the department store."

Chanel Korea further said it strongly regrets Galleria's decision to allow Gucci's pop-up, as the move has become a big obstruction to their pleasant partnership built through their 25-year cooperation.

Department Store Company's Response

Business insiders shared that Chanel was infuriated by the fact that the Galleria Department Store designated a space for Gucci's pop-up store in front of its boutique. Luxury brands previously occupied the area and have now been given to the Italian fashion company.

An official of Galleria was said to have felt embarrassed about Chanel's sudden shutdown. Then again, he explained, "Before launching the pop-up store, we communicated with Chanel and the other brand operating the pop-up. Although there were different views on the matter, we were working to narrow our differences."

He added, "It is rare for a brand to cease operations due to communication issues with the department store."

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