Williams-Sonoma is exiting S.F.’s Union Sq.. Chanel is shifting in

Homewares store Williams-Sonoma is leaving its longtime Union Square store — but the retail space is being filled immediately.

Luxury fashion company Chanel is moving into the three-story building at 340 Post St. after buying it for $63 million last year. According to the Union Square Alliance, which represents retailers, Chanel is moving from its current location at nearby 156 Geary St.

A Williams-Sonoma spokesman confirmed the store will close next year as its lease expires. Chanel did not respond to multiple requests for comment.

Chanel’s purchase of the building at over $3,500 per square foot was one of the biggest sales of the pandemic and demonstrated demand for prime retail locations. In contrast, office building prices have been paltry as remote work crowded out downtown.

ABC first reported on Chanel’s planned move.

A number of retailers have announced plans to close in the Union Square and Powell Street area, including Coco Republic, Nordstrom and Saks Off Fifth.

Williams-Sonoma, a San Francisco company, has no other retail locations in the city but does have stores in Corte Madera, Palo Alto, San Ramon, San Mateo, Santa Clara and Walnut Creek.

The company representative declined to comment on whether the company would open another store elsewhere in San Francisco. A few years ago a store in town on Chestnut Street had closed.

Reach Roland Li: roland.li@sfchronicle.com; Twitter: @rolandlisf