Wealthy people love Aspen, Colo. The ski and snowboarding resorts, picturesque views, and clean air make the city a favorite location for vacation mansions and chalets. But for the uber wealthy, having to pack up the haute couture to move from one house to another likely seems absurd. Rather, they want stores in Aspen too, and luxury brands like Chanel are responding to those demands.

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In the Chanel example, the designer created a fabulous and fancy pop-up store for Aspen’s winter ski season, offering pricey sweaters and gorgeous handbags, along signature perfumes. It plans to remain open for just about two months, but no corners were cut in building out the boutique, designed to mimic Coco Chanel’s own Paris apartment.

Other brands have made similar inroads, whether by holding trunk shows in luxury hotel rooms or building their own temporary spaces. For local retailers, the intrusion is a serious threat. Wealthy buyers might be enticed by being able to purchase from their favorite, familiar brands, rather than trying something local. Even if the famous brands stay only for the season, they might steal virtually all the sales a local company would make for the year.

Discussion Questions:

1. Why do retailers/manufacturers like Chanel open pop-up stores in locations like Aspen, Colorado?

Source: Barry Samaha, Fortune, December 30, 2019