In recent years, many cities and municipalities around the world have been struggling with the phenomenon of vacancies - especially in city centres - as the retail landscape has fundamentally changed due to online shopping, changing consumer habits and economic challenges.1 More and more department stores, once vibrant centres of retail, are closing and standing empty - sometimes for years.2 However, vacant department stores are not only the result of a changing retail sector, but also of the monofunctional orientation of many of our city centres, in which there has so far been little room for cultural uses oriented towards the common good. However, as a meeting place for urban society, city centres are central to the encounter of different people and milieus. Department stores' properties can play a special role in future (urban) development.
But how can these vacant spaces be revitalised and activated? What utilisation concepts can be considered for the subsequent use of department stores' properties? How can we create new added value and at the same time consumer-free places that are integrative spaces and at the same time accessible to all?
Lengthy and complicated authorisation procedures are the biggest challenge
An analysis of previous reutilisations of department stores shows that most department stores' properties are located in so-called core areas. Projects for the conversion of department stores are therefore subject to planning regulations for development and use due to their central city centre location. The legal planning requirements in core areas show that it is possible to integrate cultural types of use into subsequent utilisation concepts. However, the analysis also reveals that long and complicated authorisation procedures are almost always part of the transformation process through conversion. Cities and local authorities can play an important role in this context, as they can sometimes speed up bureaucratic processes. Irrespective of the location, the cubature and substance of the properties often make it difficult to achieve cost-effective and flexible conversion. For example, room height and depth can be challenging. In addition, there is often a lack of open window fronts to ensure adequate lighting and ventilation. In addition, many of these buildings are equipped with specific building services such as escalators, lifts and ventilation systems, which make comprehensive remodelling even more difficult.
Scepticism about economic viability often prevents the integration of cultural uses
A screening of relevant studies makes it clear that more private-sector conversion projects for department stores can be observed overall. This may provide an explanation as to why cultural types of use have only been integrated into a few re-utilisation concepts to date. Private-sector property owners are often profit-oriented and therefore tend to be sceptical about the economic viability of cultural offerings - an issue that many cultural institutions, for example, are also confronted with. Cities and local authorities, on the other hand, are also interested in creating places with a quality of stay that are free of consumerism.
This conflict of interest sometimes leads some cities to consider the purchase and subsequent operation of a department store property. However, cities and local authorities can also play a moderating role in the transformation process by actively approaching property owners of vacant department stores' properties. As tenants, they can also ensure that cultural uses for the common good find more space in the city centre.
Good practices for the integration of cultural uses
Despite scepticism about the economic viability, there are some good examples of both private and municipal transformations of department stores that have integrated cultural uses into their after-use concept. The following examples show positive spill-over effects on neighbouring streets and urban society. The CORE is considered a showcase project of this kind. The former Hertie shop was converted and opened its doors in 2021 with a new concept that offers co-working spaces, multifunctional areas, a market hall with space for catering, readings and concerts with outdoor seating in public spaces.
"Before CORE moved in here, the street was empty. Shops have since moved back in."
Another example is the JUPITER in the former Karstadt Sport shop in Hamburg's Mönckebergstraße.The city activates vacancies of various sizes as part of its "Frei_Fläche" programme.Today, the various floors of the former department stores' are home to pop-up stores, studios, a café and event spaces. A roof terrace also invites people to linger.
"We have received a lot of positive feedback.The special location of JUPITER also allows us to reach many different target groups."
The interim utilisation project has now been extended for the second time in a row.It is not yet clear what will happen to the department stores' after the interim use.One of the intentions of the project is that creative use will continue to be made possible at best because it has proved popular.After all, creative uses that are unique and cannot be found in any other city can show that this is exactly what is needed to revitalise the city centre.
An adaptive mix of uses makes a decisive contribution to the success of a conversion
Analysing further examples makes it clear that an adaptive mix of uses is crucial to the success of such a project. Retail can act as an anchor tenant in terms of the property owner's return on investment. At the same time, the integration of cultural uses can create consumer-free spaces that are inclusive and accessible to all.In addition, modular spaces that adapt to tenants' requirements and offerings are very important.In view of the challenges, it is crucial that a comprehensive and collaborative approach is taken when developing a new concept for the future.Addressing interest groups at an early stage, for example through moderation by the city or local authority, creates a future, integrity and acceptance of the project. There are no patent remedies for the cultural conversion of a department store.Every location and every (urban) society has different requirements for a transformation project of this kind.However, good role models such as the CORE in Oldenburg or the JUPITER in Hamburg can provide inspiration.
As an industry expert, actori sees great potential in the integration of cultural uses in the reutilisation concepts of department stores' properties. If you are interested in the conversion of a department store or one of your existing buildings and are unsure how to start the transformation process, actori will be happy to support you. We have developed a specific one-day workshop format in which we work with our clients to draw up a utilisation model as a first step.
Sources:
1)https://www.ndr.de/kultur/buch/Mehr-als-Shopping-Von-der-Transformation-unserer-Innenstaedte,innenstaedte142.html
2)https://www.zdf.de/nachrichten/wirtschaft/unternehmen/galeria-karstadt-kaufhof-insolvenz-zukunft-100.html
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A contribution by Brenda Schleier, alumna