NEW YORK — The iconic Chanel shoes chain has announced it will close its Toronto location, saying the Toronto-based company can no longer meet the growing demand for its signature shoe.
The decision comes as Chanel continues to struggle to adapt to the rapidly changing shoe industry, with brands such as Burberry, Fendi, Reebok and Adidas seeing declining sales in recent years.
The brand is hoping to expand to more markets and expand into new areas such as fashion, beauty and home furnishings.
Chanel has struggled to compete with retailers like Nordstrom and Foot Locker as well as retailers like JCPenney, as well.
The chain also faced increased competition from other footwear brands in recent decades, such as Nike and Under Armour, that have begun to focus on cutting-edge technology and materials.
“We are committed to making Chanel as successful as possible, and we have been working with the Toronto City Council to continue to meet our obligations to the community and our customers,” said Chanel President and CEO Michael Bienvenu.
The Toronto location will close by the end of the year, but will continue to operate as an online store.
“Our team will continue its work with the City to ensure that the brand will be available for consumers to visit in the future, and the community will have the opportunity to visit the iconic Chanels Toronto location for their own enjoyment,” said Bienvinu.
“With today’s announcement, we are continuing our efforts to deliver a quality and memorable experience for our guests, our employees and our guests’ friends and family.”
The announcement comes as the Toronto Mayor has been in discussions with Chanel about redeveloping a historic site at Yorkdale and surrounding land that would be a new public plaza, which is being developed as part of the $25-million redevelopment of the city’s downtown core.
The site is expected to be completed in 2019.
Chanels flagship store, at the corner of Yorkdale St. and Dufferin St., opened in 1961 and was renamed the Chanel store in 1995.
The store has sold more than 100 million pairs of shoes worldwide, with sales surpassing $1 billion in 2014.
It was recently sold to an undisclosed buyer.
Chanelles Toronto store was opened in 1966.