Fashion boutique Shila” closes: Another sign of the inner city shock!

Fashion boutique Shila” closes: Another sign of the inner city shock!

The fashion boutique “Shila” in Ribnitz-Damgarten will close at the end of the month. Owner Jana Marquardt does not comment on the background to this decision. The store, which opened in March 2021, was particularly known for its Scandinavian fashion for women. “Shila” was Marquardt's third location, after previously operating stores in Rostock and Malchow. The latter remains active together with online trading. However, the store in Rostock had to close at the end of 2023 due to a lack of walk-in customers. There is now no new tenant for the shop on Langen Straße in Ribnitz.

Why are so many downtown businesses struggling to survive? Brick-and-mortar retail is facing enormous challenges due to increasing online trading, changing work culture and the effects of the coronavirus pandemic. Urban researcher Thomas Krüger is clearly in favor of measures to redesign shopping areas. He calls for the development of unique shops and offers in order to attract a diverse audience and stop the loss of attractiveness of inner cities. The German Trade Association (HDE) supports this approach and is calling for an inner city fund of 500 million euros to support threatened inner cities. This is becoming increasingly important given current forecasts that predict a significant decline in stores in the future if action is not taken. Deutschlandfunk reports that empty shops could further aggravate the situation.

The background and the pressure on retail

As consumer purchasing behavior has changed, retailers are realizing that the city center is becoming increasingly less important. A look at the numbers shows that the proportion of under-30s who value the city center as a shopping opportunity has fallen from 75% in 2015 to just 40% in 2021. The so-called “doughnut effect” also describes the shift in consumption from city centers to suburbs. Rental prices for retail properties in prime locations have fallen since the Corona crisis, making it even more difficult for many stores to remain profitable. Department stores and department stores, which have fallen behind in the tough competition with e-commerce, are particularly affected. Statista points out that the retail sector is struggling with long-term crises and there is not enough time to fundamentally change the situation.

Another problem is people's changing leisure behavior. Consumers want more places to hang out and meet up with friends. Around 45% of respondents in surveys demand an improved quality of life in city centers, while at the same time there is a demand for an increased functional mix of shopping, living, dining and leisure.

Given these challenges, it is clear that changes are necessary in the city center to ensure its survival. It remains to be hoped that the closure of “Shila” is not just another drop in the already full barrel, but rather inspires us to find creative solutions for the future of our retail. The ball is now in the court of the responsible decision-makers and society to find new ways to keep our inner cities vibrant.