Recent headlines from Berlin’s KaDeWe have painted a dark picture of a once great department now in a fall. Since the last visit to the seven floor luxury emporium two weeks, the situation appears more dire on a Monday afternoon, customers appear to be staying away. More brands have pulled, not selling merchandise, or not restocking. Escalators are not working, employees are milling around staring at their smartphones. The shopping institution future looks uncertain.
An insolvency sent shock waves through the German Retail and fashion world. The KaDeWe Group announced it was unable to meet its financial obligations. The Berlin based luxury department store chain operates the famous KaDeWe in Berlin, Alsterhaus in Hamburg and Oberpollinger in Munich continues to operate, for how long? Brick and mortar retailers have suffered over the years with the rise of online shopping, Covid lockdowns and inflation, the high-end houses were not immune from these pressures. The KaDeWe is now in a tailspin.
Founded in 1907, the Kaufhaus des Westens has been a beacon of consumption for generations. The food court floors are gathering spots to see and be seen.
The reason for the bankruptcy has been blamed on high rent charged by parent company Signa Group. True or not, the signals coming from management has been confusing. Unpaid invoices dating back to September 2023, threatened legal action, accusations being hurled, unpacking the corporate drama will take time the stores may not have. Suppliers have pulled stock from the shelves, brands no longer sell on the sales floor. Questions about restocking for the new season are up in the air. The fifth floor homewares department may close because customers are not allowed to buy items.
Visiting the KaDeWe, I wanted to see the damage for myself. A “wake” is the best description for the scene. Empty shelves, roped off areas, sales staff wearing tight smiles unable to comment, not sure if they will have positions in the coming weeks.
Could this be the end of a seven floor fashion landmark? Will a bailout happen in time? As the shopping temple’s downward spiral goes into a second week, the KaDeWe’s creditability is on the online. Vendors could completely jump ship. Customers will start staying away from a decaying palace.
The usual KaDeWe Christmas visit happened recently. Was this visit the same as previous years? NO. Covid pass to enter, fewer buyers and a feeling of melancholy for the what has passed. But it is nice to visit Berlin’s famed store.
AGAIN! Another reopening, in time for the summer. We have been through this before. A part of me thinks these lockdowns are a trail run for a societal behaviormodification program. But, a least the city opened again. Life is sort of normal. Whatever that means in 2021.
I decided to meet a good friend at the KaDeWe department store for lunch. How middle class! I got to the front entrance. If only it could have been so simple. NOPE! I woke up early to get a Covid test valid for 24 hours.
A new app has taken the stores by storm, or holding it prisoner, LUCA. All shoppers have to scan the Google bar code before entering establishments. I did not get the memo. A tall handsome blonde security person told me I could not enter without the new tracking tool.
After a twenty minute ordeal of trying to download this tracking app, the door person told us we can show the negative notice and register inside. Really Pamela Anderson! Telling us this information AFTER all the trouble. OK!
Line one for the entrance registration took 3 minutes.
Up to the food floor. All the culinary sections were roped off, one way in or out. Getting to an area was the same as a mouse in a maze searching for the cheese in the center. We decided on the Kartoffelacker, known for potato plates. But first, we had to show our Covid Status, AGAIN! Then filled out another form. Thankfully, the restaurant service was exceptionally attentive.
After 90 minutes of food, wine and chatting we decided to do some shopping in the 7 floor cathedral of consumption. Down we went to the menswear area. Sadly, nothing was on sale. On the ground floor, heaven and fun. “Dream as if you’ll live forever”, James Dean said. Talking to the sales people at Fendi and Tiffany sales people. My shopping partner loves the Blue Box jeweler.
Suddenly, I remembered an event that required a gift. Back upstairs for coffee. Guess what! AGAIN! Another form and we had to show the staff our status.
Thankfully, there is a stationary department on the 5thfloor with cards and pens. My life was saved.
Would I go back to the KaDeWe during these times?
Today I got a message from the KaDeWe regarding my Click and Meet experience. How do I out it? Horrible. If I ever wanted to feel what it was like to live in the U.S.S.R circa 1972. I had a taste of it on Saturday at 1:00, standing outside in the cold wet weather waiting in a long line to go shopping in Berlin’s luxury department store.
After three months of closure, German retailers reopened on the March 8th. Finally, a place to go other than a discount supermarket. But, there is a catch. Spontaneous shopping is no more. A relic not fitting in today’s world. As we can read, Merkel and crew are grasping by finger nails to the Covid situation, but had to bow to economic pressure.
Click and Collect means making an online shopping appointment online for one hour. I made three wanting to see what was on sale. As my friend said, “ they will have to pay us to take their unsold merchandise”. Stores have 3 seasons of unsold merchandise. Snazzing myself up a bit for a shopping day. Be careful what you wish for. I had to wear a Ffp2 mask for the 35 minute metro journey to City West.
I arrived at my first appointment, the flagship Peek and Cloppenberg store. Normally, the six door grand entrance buzzes with customers rushing in and out. This time you have to check in through one door with security staff all asking if you have an appointment. I did, but the awkward sensation of being asking to shop, strange. Not a lot of people shopping in the store at 11:00. The end result, I bought nothing.
Having a bit of time, I went next door to KaDeWe for my next appointment one hour early. Not a long line, perhaps I could get in early. Not happening! Security enforced the appointment times, 1:00 meant 1:00, no early entrances.
Wondering around a dead Kudamm, no cafes, no random shopping cause I made no appointments. Rain, cold, wet with no where to go for for seventy-two minute wait.
Finally, 13:00. Walking up to the KaDeWe, a long, long, line. I asked two guys, “All of you have an Appointment?” “Yes!” I walked to the back of the line after asking security how long of a wait. The five minute reply was met with scepticism.
I met a woman waiting to enter. Asking her opinion of the situation, the response, “CASTROPHE!”
Finally, people moved towards the door. Heading up the escalators, mens area first floor. Busy, busy, shoes on sale at half price. Tempting. In the end, I left the menswear floor empty handed.
Wondering up the famed food area, really crowded. My standard buys are the cakes and bread from Lenotre. Then, a wonder around to the Champagne area. Nothing on sale in the sparkling wines section.
After thirty five minutes, enough. The feeling was lost. A cordoned off luxury store, a timetable to shop, not for me, exit, left door.
My last Click and Meet appoint, the most French spot in Berlin, Galeries Lafayette. Arriving early, I managed to get in however I had to take a number. The sales were ok, but the far from crowded store had a sort of Twilight Zone feel. I kept asking myself, “Why Do I need to buy this?”
The food section, my favourite, I bought baguettes, cheese and a brioche, leaving the store through the side door.
An honest opinion of the Click and Meet plan, another knife in brick and mortar retail. The government wants us to shop online.
The city has eased the lockdown but shoppers are staying away from malls. Demand has dissolved. The “New Normal” for the short term means less consumption.
What makes it hard to buy? The constant reminders of the Coronavirus. A Mood killer!
Department stores are ingrained the fabrics of cities. Cultural temples of consumption, meeting places to see and be seen. Before World War 2 Berlin had many grand showcases of prosperity lining its big streets and plazas. The sole survivor still in existence today is the KaDeWe on Tauentzienstrasse. Damaged by Allied bombings in 1943 the building closed until its reopening of its first two floors in 1950. Today, owned by Central Group, the giant store boasts over 60.000 square meters covering seven floors.
The latest renovation of the retail store giant is taking place over a staged periods. Phase 2 opened in this week, the ground floor, fifth floor, and sixth floor.
First, the ground floor, a narrow funneling traffic approach layout between the LV and Dior concessions. Not the most welcoming or pleasant interior, first impressions. I had feeling of running through a luxury Pac Man game. The funnel or entry track ends in a very cramped make up department at the foot of escalators.
The second renovated floor, house wares department, falls short of imagination with many new brands “just” on display, lacking an engaging effect.
A social meeting place, a hangout, shop for those special items only found in one spot in the city. KaDeWe’s food floor is as much a part of Berlin as the Brandenburg Gate, a reference point. The sixth floor mixed groceries bakeries, mixed cuisine restaurants, and cafes side by side, a local meeting place in many forms.
The remodelled phase one opened in December 2018. The completed second phase recently opened. Half thought out, awkward, lacking warmth comes to my mind. Out with the old footprint, in with the new. In my opinion, the old was better, special, more charm.
The atmospheric lighting is jarring, sterile. A remodelling blueprint exists, perhaps a bit of a rethink is needed. There is no overall look. New restaurant stalls just plopped in the middle of the floor layout. Tables randomly placed along low glass wall
Reinventing the 21st customer experience is crucial for retailers. Certainly the KaDeWe is moving ahead, but the direction is the question.
The KaDeWe Grand Opening Event was a crowd pleaser. An all expense gala with over 1800 guests sampling the newly opened restaurants.
Kadewe Phase 3 opens in December 2020
Charlotte Tilbury launched her line cosmetic and skin care line at the famed KaDeWe Department Store in Berlin to an enthusiastic crowd this week eager to get make up tips and make overs. The British born make-up artist to the stars clients has included J-Lo, Kim Kardashian, and Kate Moss to name a few. Tilbury’s beauty resume also includes campaigns for Tom Ford and Burberry.
Black and Paper coverage of the event.
