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T o put it bluntly, the struggle for survival of our inner cities is real. The city survey 2022 of the EHI
Retail Institute states that 68 percent of the municipalities surveyed observe shop closures in
downtown locations and pedestrian zones. The larger the vacant property, the greater the consequential
problems, because vacant commercial buildings usually trigger the so-called trading-down effect. Thus,
a vital retail structure becomes a desolate location that suffers a decline in image due to low-cost sup-
pliers. But the crisis also holds positive potential. Mixed-use neighbourhoods and living in ecosystems
that ensure short distances between work, childcare, housing, consumption and leisure have recently
come into focus. However, Stefan Müller-Schleipen, managing director of the initiative Die Stadtretter,
comments: “The market can no longer achieve a balance on its own.” For this reason, many initiatives
with creative concepts have emerged : The City of Essen subsidises stores in prime downtown locations
for founders with good business ideas. Stadtlabore für Deutschland, a platform by Center for Research
in Retailing, Cologne, provides a comprehensive overview of vacant commercial spaces and possible te-
nants throughout Germany to prevent vacancies from occurring in the first place. Nevertheless, the de-
partment stores remain the problem children. The selection of projects for AIT’s retail editions reveals:
high-quality concept shops with an experience factor remain interesting, and department stores in the
luxury segment such as Samaritaine in Paris (AIT 9.2021, redevelopment: Sanaa) or KaDeWe in Berlin Öffnungen in der Fassade und zwischen den (4) ... • Openings in the façade ...
(AIT 1/2.2022, redevelopment: OMA) are still in demand. Nonetheless, middle-class department stores
are facing their demise, leaving only two options: demolition and redevelopment or repurposing. The ... Geschossen erzeugen eindrucksvolle Raumqualitäten. • ... create spatial qualities.
challenges of conversion are obvious: poor natural lighting, low ceilings and large areas that need to be
restructured. All this is complex and expensive. Many cities and municipalities find demolition easier.
Schleswig had its department store demolished in 2018, but there is currently neither an investor nor a
concept for the now available 2,000 square metres. Demolition for the sake of demolition is therefore no
solution. Reuses and conversions are diverse. Hamburg Kreativ Gesellschaft (HKG) has taken on Karstadt
Sport in Hamburg’s city centre. Since October 2020, 8,000 square metres have been unused here. Until
31 December 2022, creative people could rent in this prime location for pop-up venues. In November
2022, the Hamburger Stiftung Baukultur used 800 square metres for 10 exhibitions and 47 events under
the motto “A Month of Building Culture” (2), broaching the subject of urban redevelopment in times of
climate change. A similar case is the Tati department store in Paris (3), which closed in 2020: on the oc-
casion of Fashion Week 2022, Paf Atelier designed an interim use as cafeteria, showroom and workshop
space for the brands Maisons Château Rouge and Jordan. “Diversified re-use concepts yield the greatest
success,” says Thomas Veith, Head of Real Assets at PwC Germany. Mixed-use concept is the magic word.

The small town as a pioneer of successful conversions

It is striking that a large number of small to medium-sized cities have long been able to successfully im-
plement conversions of department stores, while large cities seem to be having great difficulties. One
cannot help but wonder whether the level of distress in the event of a closure is higher in small towns
and thus the awareness of an urgent need for re-use. Stefan Müller-Schleipen: “Owners of department
store properties are usually financial investors, often based abroad. If the operator moves out, they first
try to rent the building to another retailer. Cities and municipalities have to take responsibility and get
more involved, either as owners or as operators.” AIT recently reported on a conversion into a citizens’
office in Darmstadt by Carsten Gerhards Architekten (AIT 12.2022). One outstanding conversion project
is the Core (formerly Hertie) in Oldenburg (1), where Angelis & Partner acted as both architects and partial
investors. “The aspiration,” emphasises the office, “was and is to create a new centre for Oldenburg with
a focus on networking, exchange and communication.” A metropolitan revitalisation project by Paulo
Mendes da Rocha and MMBB architects is located in São Paulo: the architects succeeded in transforming
the former Mesbla furniture shop into a culture and leisure centre. The SESC 24 de Maio (4) thus provides Highlight des SESC 24 de Maio ist der Pool auf dem Dach. (4) • Highlight: the pool on the roof
ample space for catering, sports and culture with high architectural standards. In Germany, students are
also working on the task: in the winter term of 2021/2022, Professor Steffen de Rudder at Bauhaus-Unin-
versität Weimar asked students to come up with a new use for the still operating Karstadt branch in Ber-
lin’s Wedding district. And in Hamburg, the EDEKA.award Rethinking Urban Retail 2021 for master’s de-
gree students from HafenCity University focused on the revitalisation of Mönckebergstrasse, one of Ham-
burg’s main shopping streets. The award also shows that retail chains such as Edeka, Aldi and Lidl are
increasingly interested in urban and real estate development: it is a matter of planning location-enhan-
cing additional uses when developing new retail spaces, such as the integration of housing, other com-
mercial space, hotels, offices or social facilities, which make effective use of the site as a whole. The so-
called ImmoTail trend is based on the understanding that as a stationary retailer it is no longer sufficient
to look at oneself and one’s competitors, because offers and concepts for department stores or entire
quarters can no longer be conceived or successfully developed in isolation from their surroundings.
According to the EHI Shopping Center Report 2022, the conscious, active design of one’s own retail loca-
tions in mixed-use quarters is becoming a desirable business model, because such projects have increa-
sed fivefold in Germany within a decade. Large department stores need responsible, future-oriented Fotos: Nelosn Kon
cities, precisely tailored mixed-use concepts and ... admittedly, also smartly invested capital.

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