What: Chanel’s 2021 revenues rose 23% over pre-pandemic levels to USD15 billion. The brand now plans to open private stores for top clients as rapid growth risks overcrowding its stores.

Why is it important: Chanel’s sales grew far faster than the wider luxury market, and roughly one-third slower than rival leather goods powerhouse Hermès. Growth was driven by a “balanced” mix of price increases and higher volumes.

As sales continue to surge, the company remains committed to maintaining a tight store network, it presently has only 250 fashion boutiques. The company plans to boost customer service by hiring more than 3,500 new employees, including many sales associates.

Chanel also plans to open separate, private boutiques dedicated to serving top-spending clients, starting with locations in key Asian cities by early 2023.

Chanel to open dedicated boutiques for top-spending clients