Here's a first — the Gagosian gallery empire is actually contracting instead of expanding. Rather than announcing another new gallery space in a far-flung locale, megagallerist Larry Gagosian is closing the two-year-old Gagosian Store at 988 Madison Ave and 77th Street.

The 2,500-foot, two-story space previously sold high-end multiples and artist books by such Gagosian artists as Damien Hirst, Richard Prince, John Currin, and Jeff Koons (whose porcelain puppy vases were a signature attraction.) The space's upper level was home to Other Criteria, a store run by Hirst that sold his own products alongside selections by emerging artists. Four stories above is the gallery's flagship space, where the controversial Bob Dylan show now resides.

In addition to focusing on gallery-related products like exhibition catalogs, posters, and publications, the Gagosian Store also featured designer furniture. A store employee said that the merchandise would shift to a Web site, the New York Post reports. The move online is echoed by the cheery sign currently hanging in the papered-over storefront's window: "Please visit the gallery at 980 Madison Avenue and look for us at www.gagosian.com!"

The ongoing extension of Gagosian's imperial gallery network (currently including satellites in cities stretching from Hong Kong to Geneva, Rome, and London) and his recent real estate purchases in New York (a $36.5 million mansion on the Upper East Side not far from his Madison Avenue gallery space) make it clear that the decision to close the store was not motivated by lack of cash flow. Maybe Gagosian just doesn't want to become the new Starbucks of upper Manhattan?