The decline of department stores in city centres does not represent a setback for urban planning; quite the contrary, it creates opportunities for new architectural concepts and innovative urban development. Exciting projects are emerging across Germany, ranging from creative mixed-use solutions to the renovation of existing buildings.
by Florian Heilmeyer
Today’s transformation may seem sudden, but it is actually the result of a long-term process. The relevance of traditional department store formats has been declining since the 1990s. Retail and consumer habits have changed fundamentally, with outlet centres located near busy roads proving to be just as much competition as online stores, which now offer increasingly sophisticated delivery and returns services. In the 1990s, every medium-sized town had one or two large department stores, often spanning an entire city block. As these stores have become redundant, some have adapted their internal layout by renting out space to pharmacies, supermarkets, gyms, boutiques and restaurants. Others have shut down entirely. A 2024 study by Empirica found that 131 department stores had closed in Germany since 1999.
New Opportunities for City Centres?
This also gave rise to a paradoxical concern: the fear that the decline of department stores would result in the ‘death’ of city centres. Yet these very department stores were once accused of sucking the life out of diverse cityscapes and drawing people into their vast interiors like giant vacuum cleaners. So, is the decline of these department store dinosaurs truly a bad sign for urban centres? Or does the smart repurposing of these spaces offer a huge opportunity for reinvention? An increasing number of people are talking about change rather than crisis. According to the Empirica study, only 24 of the 131 closed stores were demolished. The obvious advantage of these stores is their central location and robust, highly versatile and reinforced concrete structures with deep, open-plan interiors. It’s no surprise, then, that many have been successfully repurposed.
Photo: Marcel Kusch
One Project, Many Strategies: The MarktQuartier in Recklinghausen
The former Althoff-Warenhaus (Althoff department store) in Recklinghausen is a prime example of how contemporary transformation strategies can be implemented. Originally designed by the renowned department store architect Philipp Schaefer in 1929, the monumental building was last owned by the Karstadt group. After filing for insolvency for the first time in 2016, the Karstadt group abandoned the building.
In 2017, developers AIP began a feasibility study analysing local needs and offerings. The result: ‘MarktQuartier Recklinghausen’, a multi-use space. The ground floor now houses a supermarket, a bank, a pharmacy and a restaurant. On the upper floors, behind the historic façade and particularly in the rear extensions, parts of the core structure were removed to create a large, green inner courtyard. This courtyard provides light and ventilation for an adjoining hotel and 87 assisted living units. These units offer day and short-term care services, particularly for elderly residents. A nursery with a playground has been added to the roof of the rear wing, and children can now enjoy spectacular city views through its secure windows.
Metamorphosis in Neuss: transformation of the former Horten department stores into the local council offices, the Rheinisches Landestheater theatre, and the Hit-Parade cinema (1998–2000). Photos: Holger Knauf
From Chemnitz to Oldenburg: Successful Conversions Nationwide
The Recklinghausen project is a particularly multifaceted project, and also serves as an example of many similar projects across the country. Questions that commonly arise include: How can deep floor plans be made to receive more daylight? What sustainable uses are appropriate for specific locations? One thing is clear: simply replicating a successful model rarely works. Every town and building requires its own solution. Nonetheless, there are parallels: At ‘Neue Höfe Herne’, for instance, HPP Architects transformed a former Emil Fahrenkamp department store into a complex comprising a supermarket, gym, food outlets and rooftop housing.
Another example is the smaller ‘CORE’ project in Oldenburg, where local entrepreneurs unwilling to accept empty premises converted part of the former Hertie store into a vibrant community hub. The ground floor now houses a food court offering not just lunch, but also event space. Above this is an open co-working space with 150 desks, as well as a gym, a small bank branch, and a specialist retailer.
Düsseldorf has also embraced creative reuse: the RKW architecture firm converted a former Kaufhof department store into a large-scale gourmet supermarket with a hotel on top. This approach has even caught on in major cities, as seen with the ‘NEO’ project in Leipzig, the ‘Stachus’ project in Munich and the ‘Kalle Neukölln‘ project on Karl-Marx-Allee in Berlin-Neukölln.
Spectacle Instead of Bargain Hunting: The ‘Kalle Neukölln’ in Berlin
The ‘Kalle Neukölln’ project opened in stages from spring 2024. The trend towards mixed-use development is also evident here: the building was originally constructed as a Quelle department store with a multi-storey car park at the rear that ran through the entire block. Ultimately, it was barely used as a ramp for Karstadt special offers, symbolising the decline of the traditional department store model.
Investor MREI took over the site in 2017. Since then, it has undergone extensive transformation according to designs by Max Dudler. The old façades and the massive concrete spiral in the centre of the block, over which cars used to drive through the multi-storey car park, have been removed. Consequently, significantly more daylight now reaches the lower storeys. A new atrium has also been cut into the car park’s shell, providing brightness and spaciousness.
The building has a clear, white artificial stone façade facing towards Karl-Marx-Straße, while at the rear, where the former multi-storey car park used to be, a bronze-coloured metal façade with large windows emphasises the new character. Offices tailored to the needs of the international start-up scene in up-and-coming North Neukölln are to be created here in future. Accordingly, office space will be available in a wide range of sizes.
The ground floor is home to a record shop and a food court, while the basement houses a supermarket. Upper-floor tenants include a start-up hub called ‘Smartvillage’, an event space, Code University and a co-working provider. The 4,000-square-metre roof terrace with an infinity pool is set to open in summer 2025. The focus is therefore on spectacle rather than bargain hunting.
Light as a Key Factor in Repurposing
The ‘UP!’ in Berlin took a different approach. Shortly before it went bankrupt, René Benko’s Signa Holding acquired the former ‘Centrum Warenhaus’ from the GDR era at Ostbahnhof, which later housed Hertie and Kaufhof. The intention was to open restaurants, supermarkets and a fitness centre on the ground floor, but this has only been moderately successful so far. The upper floors, however, have been converted into bright offices behind a new glass façade. Rather than cutting inner courtyards into the reinforced concrete structure, Jasper Architects and Gewers Pudewill created deep notches running the height of the building on all four sides, as if an axe had been used to hew a chunk out of the concrete block. These so-called ‘voids’ bring light and new visual dimensions to the workplaces inside. Online retailer Zalando has now moved in across all floors — a key player in the decline of department stores. It sounds more like a story from the animal kingdom: the hunter moves into the lair of its prey.
Municipal Pioneers: Chemnitz and Neuss
Although Chemnitz and Neuss are very different cities, their repurposing strategies are remarkably similar. Their approaches demonstrate that redevelopment does not have to be purely commercial. In Chemnitz, Kaufhof swiftly abandoned the iconic ‘Schocken’ department store, which was designed by Erich Mendelsohn in 1930, because it was too expensive to maintain. Instead, Kaufhof opted for a new building and gave the land to the city council in exchange for a plot of land. The city council then took over the historic building and developed it into the Saxon State Museum of Archaeology (smac), which opened in 2014. Since then, the museum has attracted exceptionally high visitor numbers thanks to its prime location in the city centre.
Neuss also had to be rethought from the outset. Architects Oliver and Robert Ingenhoven recognised the potential of the vacant Horten-Kaufhauses department store and convinced the city council to take it over. Rather than demolishing the building, the city council renovated it to house the municipal administration and the city theatre. There was also space for restaurants, a public passageway, and a cinema. The only drawback is that the building’s distinctive honeycomb façade was removed during refurbishment to optimise lighting — a common decision in favour of larger light surfaces in many conversions.
The Next Generation of Department Stores
In light of these examples, it is reasonable to discuss the significant increase in department store closures. There is no indication that this trend will stop any time soon. In fact, as soon as a department store becomes vacant, it is swiftly repurposed. Further pioneering examples of successful conversions are already in the pipeline or nearing completion.
In Mannheim the ‘New 7’ project is nearing completion. The architects, blocher partners, are preserving the basement and ground floor, as well as parts of the first floor, of the former Galeria Kaufhof shop. This is an ecological gain for the city, as it shortens construction time and optimises the energy required for the building. Above these, surgeries, offices and flats will be built using a timber construction method, creating a classic mixed-use development. At the base, there will be space for catering and retail outlets.
In Lübeck, a former Karstadt Sport store is being converted into a school and education centre. In Stuttgart, OLIV Architekten are opening up the closed façades of a former Karstadt Sport building towards the city centre and the adjacent park. They are replacing the previously hermetic exterior with a floor-to-ceiling glass façade to create a new window to the city.
Things are changing in Braunschweig, too. A competition was recently held to determine the future of a department store designed by the renowned German architect Gottfried Böhm in 1978. Although the striking curved beavertail façades, which were inspired by the neighbourhood’s old buildings, will not be retained, the winning design by Copenhagen-based firm Adept incorporates elements of Böhm’s style. Inside, the ‘House of Music’ will be a new cultural centre, offering the city a vibrant mix of concert halls and cultural and music facilities. The old town centre is expected to benefit significantly from this new development.
The large number of successful transformations shows that vacancy does not have to mean the end; it can be the beginning of something better. We must reconsider the value of such properties in cultural, urban, social and functional terms. After all, one thing is certain: as a society, we should be able to envisage a future that goes beyond traditional department stores.
In Braunschweig, a former department store from 1978 is being converted into the ‘House of Music’. While Gottfried Böhm’s distinctive curved beavertail façades will have to be removed, the Copenhagen-based Adept office has referenced Böhm’s formal language in its design. Visualisation: © ADEPT
About the Author
Florian Heilmeyer, born 1974, lives and works on the move, but mainly in Berlin. He studied architecture in Berlin and Rotterdam and published his first texts during his studies. Since then he has worked as a critic, journalist, editor, consultant and curator in the fields of architecture, society and the city. He writes for the specialist and daily press worldwide, is the editor and co-editor of numerous specialist books and has been involved in numerous exhibitions, including twice in the German contribution to the Architecture Biennale in Venice. He is currently accompanying Gerkan Marg and Partners’ ‘Umbau’ exhibition on its world tour.
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