Chanel today demonstrated its commitment to the Melbourne retail scene by relocating its flagship boutique to a prime location at least triple the size of its former store.

The luxury French retailer, previously showcasing its wares in a coveted spot on below the Westing Hotel on Collins Street, has relocated to 140 Flinders Lane to be in the heart of Melbourne’s iconic laneways.

Enlisting the help of New York architect Peter Marino, the store has been designed to emulate Coco Chanel’s famous Parisian apartment on 31 rue Cambon. The lavish façade features specially enlarged windows and elegant balconettes.

Inside, shoppers are treated to a series of intimate salons, punctuated with artworks by Liza Lou and Peter Dayton. In a nod to the new boutique’s location, Chanel also injected some local flare by including a work from acclaimed Aboriginal artist Dorothy Napangardi.

No doubt to the joy of Melbourne handbag lovers everywhere, the brand has also announced the release of a limited “Exclusive Edition Melbourne” handbag to coincide with the store unveiling. The bag, specially designed by Karl Lagerfeld, is made of python skin and, like everything else Chanel touches, is guaranteed to quickly become an icon.