Chanel closes Galleria store over Gucci pop-up

Luxury brand Chanel suddenly closed its boutique in the Galleria Department Store in Gangnam, southern Seoul, on Wednesday. [YONHAP]

Luxury brand Chanel suddenly closed the brand’s store in the Galleria Department Store in Gangnam District on Wednesday as the label's clash with the department store over a pop-up by Gucci escalates.

“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,” Chanel Korea said.

“The installation clearly violates the contract regarding the boutique’s environment signed with the department store,” the luxury brand added. “We express our strong regret over the Galleria’s decision, hampering the 25-year-long partnership built with our company.”

Although the statement didn't specify the operator of the brand in the middle of the dispute, insiders speculatively attribute the sudden shutdown to the upcoming pop-up by Gucci, which will be located in front of the Chanel store from March 1 to 15.

The area also previously housed other pop-up stores for brands such as Dior.

The Chanel boutique store is on the first and second floor of the East Wing Luxury Boutique building of Galleria Department Store.

In the wake of the closure, Chanel Korea plans to open a separate area on the second floor to handle customer exchanges and refunds.

The Galleria Department Store said it is dismayed by the label's decision.

“We negotiated several times with the brand regarding the pop-up installation,” an authority from Hanwha Galleria, the operator of the department store, said. “The shutdown came amid an adjustment on the differences between the two parties. We will continue working on discussing the issue to minimize customers' inconvenience.”

BY KIM JI-HYE [kim.jiye@joongang.co.kr]