Chanel has closed its standalone US beauty concept store Atelier Beauté after six years.
Located in Soho, New York City, the French luxury brand opened the “new concept” shop in 2019.
With a focus on experiential rather than sales, visitors were able to try out products at various counters including fragrances, make-up and skin care.
“Since opening its doors in 2019, the Atelier Beauté Chanel has provided an innovative, digitally enhanced environment aimed at elevating our clients’ experiences,” Chanel said in a statement.
“We have recently decided to integrate the innovation practice in the existing [fragrance and beauty] operational model.
“We remain committed to delivering exceptional service and pioneering new ways to meet our clients’ needs.”
The closure comes at challenging times for the renowned brand amid a slowdown in the luxury market.
Chanel slashed 70 jobs in the US “to protect the business”, around 2.5% of its workforce in the region.
It said at the time that the US remains a key region for the business, but that it expects “ebbs and flows in demand in any market”.
In 2023, the Americas accounted for 20% of the luxury brand’s total sales, while Europe’s share was 28% and Asia-Pacific 52%.
Chanel is due to report on its financial performance for 2024 in May.
The Chance and No5 fragrance maker unveiled its first beauty house in its home market, France, last year.
Maison de Beauté landed in Passy of the 16th arrondissement in Paris with 180sqm of space spanning three floors and bringing together the brand’s signature fragrance, skin care and make-up collections.
In New York, Chanel has a dedicated fragrance and beauty store in Williamsburg that opened in 2023.
Other brands and retailers are doubling down on bricks-and-mortar with expansion and new store openings in the US.
Dior opened its first standalone store solely focused on fragrance and beauty in New York last year.
Printemps recently opened its first US department store.
The luxury French department store chain welcomed visitors to the 55,000sqft store in New York for the first time in March.
Hourglass also opened a new global flagship store in the heart of New York last month.
British beauty brand Trinny London even hosted a four-month long pop-up in the US over winter ahead of an expected country-wide launch this year.
Indu and Sculpted by Aimee are also among the UK names looking to crack the US beauty market.
