Changes in Individual Retail Sector in Eimsbüttel Unfold
Rethinking Lease Rates and City Support: Hamburg's Local Businesses Face a Crisis in Eimsbüttel
A corner in the lively Eimsbüttel district of Hamburg, Germany, showcases an intriguing contrast. A tastefully arranged outdoor dining area for a Croque restaurant sits mere feet away from a chaotic array of leather and denim apparel. Amidst the rows of heavy leather jackets, old Levi's jeans, and highly polished boots, the air carries a mix of old clothing and the aroma of neighboring baked cheese.
Sitting in the midst of this colorful scene is Helmut Hofer, owner of OK Leder, a store that's been in the same location for nearly 50 years. He looks weary, and the prospect of an interview seems to surprise him, but memories of his 1990s ordeal as a political captive in Iran spark a sense of pride in his eyes.
A Blend of New, Old, and Antique
However, that's a story from the past. Hofer's life has calmed down since then. His shop, nestled a short walk from Osterstraße – the heart of Eimsbüttel – has been selling leather jackets, designer jeans, and shoes since the 1980s. "New, old, and antique", he describes the concept of his store.
When Hofer took over the business at the start of the new millennium, he saw potential in the attractive location and favorable rental rates. Since then, the area has undergone significant changes. The population in the district has soared to a record high, driving up rental costs for both residential and commercial properties. Many local shops can no longer afford the high rents. Recently, a traditional butcher shop, Hans Wagner, had to close its doors, with a yoga studio taking its place.
Stagnating Sales and High Expectations
Hofer is aware of the struggles faced by other local shop owners, blaming the situation primarily on greedy property owners. "90% of landlords care more about money than anything else", he finds. Fortunately, Hofer has managed to secure a good rental agreement and maintains a positive relationship with his landlord.
Still, his business could thrive more. He notices a decline in interest from customers for his high-quality leather goods, explaining that affordable synthetic leather alternatives are increasingly difficult to distinguish from actual leather. The sales? "They were much better in the past", Hofer admits, sighing thoughtfully. Making matters worse, he operates the store alone, and financially, he couldn't afford an employee. He also expresses concern for his health, citing issues with his kidneys and sleep deprivation.
Eventually, he plans to retire, but he has a specific wish: The leather store in the Telemarkstraße should continue to sell leather goods.
Criticisms of Insufficient City Support
Christoph Thiele, from the Center for Economic Development, Building, and Environment in Eimsbüttel, is aware of the difficulties faced by local shops in the district over the past few years. Thiele's center is part of the Eimsbüttel administrative district and a city government department in Hamburg.
Thiele acknowledges that small shop owners face difficulties, attributing them primarily to the online shopping boom and skyrocketing rental costs for commercial spaces. "Many small businesses can no longer afford their retail spaces", he says. The fact that many properties are now owned by investment firms, exacerbating the vacancy issue, further complicates things. Between 2006 and 2021, more than 80,000 small retail businesses in Hamburg were forced to close, according to a study commissioned by the city on retail development potential, published in February. This year, an estimated 150 more may shut their doors, writes NDR.
Thiele admits that the city could do more to support local businesses, acknowledging that many small business owners have lost faith in the political system and feel abandoned. However, he suggests ways for shop owners to take action. For example, joining interest groups comprising local shop owners can help them voice their concerns collectively to the city government. "Any property owner can join the advisory committee", emphasizes Thiele. "Adjusting direction is what it's all about". "Unfortunately, it seems that not many are interested or have the time".
"Overexploited with No End in Sight"
In another part of the district, Karsten Maaß, owner of Optik Daniel, a store specializing in optometry, grapples with stocking a lower shelf in one of his lower cabinets. He pulls out a simple reading glass with a milky white frame, the customer is immediately thrilled – it's just what she needs! The purchase completed, Maaß seems relieved but not overly satisfied. There's just something about the online shopping boom that troubles him. "The internet has changed everything", he laments. "Prices are insanely competitive, and we're always more expensive than the internet". Large chains can adapt to some degree, but small shops can't keep up, he argues.
Many customers come to his store to try on glasses and then buy cheaper options online, he explains. "We're being taken advantage of with no end in sight", he complains, but then manages a wry smile. He doesn't want to sound too negative, but it's just hard.
When asked whether he's ever considered selling glasses online, Maaß shakes his head. The logistical challenges and, ultimately, the lack of profitability are too daunting. He will gladly ship items upon request, but running an online store with all the necessary infrastructure is beyond his capability.
Eimsbüttel in the Past: More Shops, Less Food
Maaß took over the business from his father in 2003. Optik Daniel has been around for more than 100 years. In the past, Maaß recalls, the area looked different with more local shops and less focus on food establishments. He also remembers knowing his neighbors, but that's changed now, he says: "In many shops, only temps work. I don't know them, and they don't know me".
When asked if he feels sufficiently supported by the city, Maaß shakes his head. He feels the city has thrown many obstacles his way. He's hopeful about retiring someday. Despite his frustrations, however, he has one wish for his industry: A tax on packages and an end to free shipping for online orders.
Economic Development Department Working on Support Program
Christoph Thiele acknowledges that the situation for local businesses in Eimsbüttel needs to improve, and the Hamburg Economic Development Department is aware of this. They are already working on a support program, with strategic neighborhood management at its core.
Neighborhood managers would act as liaisons between the local businesses and the city government, providing support and assistance. The plan includes increasing funding for neighborhood managers, improved regulations to reduce vacancies, and efforts to implement a package tax or ban on free shipping for online orders, although Thiele doubts the feasibility of these measures. The effectiveness of the planned measures remains to be seen, and it is uncertain if OK Leder or Optik Daniel will still be in business when they are implemented.
Simon Laumayer
Simon Laumayer, born in 1992, became school "top dog" in rock climbing at the age of 16. After completing his Bachelor's degree in Cultural Studies in Lüneburg, he now earns a living as a route builder in a bouldering gym. Vacation finds him climbing in the Swiss Alps. In his personal life, he enjoys hip-hop in the speaker boxes of his camper van. Nickname: sil
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As Helmut Hofer grapples with stagnating sales and high expectations, he expresses concern about the mounting rental costs in the retail sector, attributing the issue to greedy landlords and skyrocketing real estate prices. In the finance sector, Hofer contends that he cannot afford an employee, citing concerns about his health and the financial burden of employment.
Christoph Thiele from the Center for Economic Development, Building, and Environment in Eimsbüttel acknowledges the difficulties faced by local businesses due to rising rental costs and the online shopping boom. In an attempt to support local businesses, the Hamburg Economic Development Department is working on a support program, which includes strategic neighborhood management, increasing funding for neighborhood managers, improved regulations to reduce vacancies, and efforts to implement a package tax or ban on free shipping for online orders.
