French law only allows retailers that sell sporting, recreational, leisure and culture items in heavily trafficked tourist areas to open on Sunday. The law is aimed to support "dominical rest."
Louis Vuitton has argued that the store features a cultural element. The French Confederation of Christian Workers, or CFTC, and a federation of clothing and accessories vendors filed a complaint against the retailer.
France's highest administrative body ruled against Louis Vuitton on Wednesday, revoking a lower court ruling that had allowed the store to stay open on Sundays.
Louis Vuitton parent company LVMH said it does not contest the Council of State's decision, but called it obsolete because a lower court in December granted a new exception that the council didn't rule on.
The CFTC said that at some point, barring new legislation, Louis Vuitton will be forced to close the store on Sundays because lower courts will now be bound to honor the precedent set by the Council of State.
Conservative French President Nicolas Sarkozy has sought to loosen decades-old rules that restrict shopping on Sunday, hoping to provide a jolt to France's moribund economy. LVMH said 70 jobs were dependent on Sunday openings at the Champs-Elysées store.
As on many past Sundays, dozens of tourists gathered in front of the store to snap photos before entering. No police were seen nearby.
Some French themselves were torn over the issue.
"It's not cut-and-dry," said Gerard Leonet, a government employee walking out of the store. "While they should be able to be open on Sunday, workers' rights are important too."
"What worries me is that an employer could one day refuse jobs to potential employees just because they say they don't want to have to work on Sundays," he added.
Representatives of the Council of State and a labor union critical of Louis Vuitton's Sunday openings could not be reached by phone on Sunday.
