The auction was held Monday in Milan, and beside the French luxury fashion house, drew in six additional luxury brands including Loro Piana, Samsonite, Damiani, Swarovski and John Richmond, that bid on the location.
With its final offer, Chanel has more than quadrupled the value of the space, which started at the base price of 545,000 euros.
The store is arranged over three floors: ground, basement and the entrance, which overlooks the gallery. It will open in the largest portion of the gallery housing Tod’s, whose contract is about to expire.
But Tod’s will not move far. The brand will open its new store just a couple of meters away, where the former suitcase brand Bric’s had a store, right in the center of Milan’s luxury shopping mall. Tod’s secured the property for 1.8 million euros payed annually, for a concession of 18 years.
This is not Chanel’s first store in Milan’s Galleria. There is already a boutique that carries fragrances and beauty products.
Emmanuel Conte, Milan’s councilor for heritage, stated that: “Today’s price increases confirm how new forms of heritage enhancement can bring benefits to the whole city. The Galleria remains a unique and sought-after place, capable of expressing a commercial promotion value that goes beyond profitability.”