The Zurich department store Jelmoli will close at the end of 2024. However, the department store is to continue to be operated under new management and in a new form.
It is not yet clear what exactly Jelmoli’s new concept should look like. But the traditional building in downtown Zurich is to house various tenants in the future. The conversion is scheduled to begin in early 2025 and is expected to last two years. The Swiss real estate group and Jelmoli owner Swiss Prime Site AG wants to invest more than 100 million Swiss francs (100.31 million euros) in the conversion. The reopening of the completely renovated property is planned for early 2027.
“With the conversion of the building, we are adapting it to today’s market needs,” said René Zahnd, CEO of Swiss Prime Site, in a statement on Monday. “Our goal is to further develop the Jelmoli house into a unique destination and an open urban meeting place.”
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The existing building will accommodate newly designed retail areas with around 10,000 square meters. Existing tenants as well as new brands and formats could move in here. Part of the upper floors will be converted into office space and supplemented with facilities such as fitness and gastronomy. The conversion is intended to ensure that the Jelmoli house will remain one of the largest and most attractive shopping destinations on Zurich’s Bahnhofstrasse in the future.
The decision to close the traditional department store Jelmoli in its previous form and undergo extensive renovations was due to the changed market conditions. “With the extraordinary dynamics of online trade and changing consumer behavior, stationary trade came under increasing pressure,” says the statement. The profitability of the Jelmoli department store could also have suffered from the competition from Globus, which has increasingly focused on luxury since it was taken over by Galeria owner Signa and the Thai Central Group.
In recent months, Swiss Prime Site has also tried to find a new operator for the department store it acquired in 2009. But the search was unsuccessful: “The intensive discussions with numerous possible partners have not led to the desired success to date.”
Managing director Nina Müller leaves
“We are aware of the scope of our decision, made it after careful consideration and communicated it early on. This gives the employees time for any professional reorientation,” said Zahnd.
The previous Jelmoli boss, Nina Müller, will hand over management of the department store at her own request in spring or by the end of June 2023 at the latest. With her departure, Jelmoli will no longer be represented on the group management of the owner Swiss Prime Site.
Current Chief Merchandise Officer Reto Braegger will lead Jelmoli. As a long-standing manager in the retail industry, he has extensive experience with transformation processes.