Jelmoli department store to close at the end of 2024

The Board of Directors and the Group Management of Swiss Prime Site announced today that the Jelmoli building on Zurich's Bahnhofstrasse is to be converted and sustainably developed. In this context, it is planned to adapt the retail space to current market needs and to add new types of use to the building. The building in Zurich's city center is expected to be converted over a period of two years from the beginning of 2025. After that, newly designed, high-quality retail space with around 10,000 square meters will be available on the lower floors - for existing tenants as well as new brands and formats.

Part of the upper floors is to be transformed into office space and supplemented by public uses such as fitness or gastronomy. According to a press release, Swiss Prime Site intends to invest more than CHF 100 million in the development project. The reopening is planned for the beginning of 2027.

Employees are given the best possible support, it was said

The decision to convert the building and make it fit for the future was taken after a profound and comprehensive analysis. With the extraordinary dynamics of online retailing and changing consumer behavior, stationary retailing has come under increasing pressure. Despite high investments by the owner Swiss Prime Site and the great commitment of all employees, this structural change was clearly reflected in the profitability of the Jelmoli department store.

Against this background, Swiss Prime Site had carried out a thorough market investigation in recent months with the aim of placing the operational management of the department store in new hands. The intensive discussions with numerous potential partners have not yet led to the desired success. Accordingly, Swiss Prime Site has now decided to adapt the Jelmoli department store to the new market conditions as of the end of 2024 and to position it on the market in a new form as of 2027 and to no longer continue to operate it itself.

René Zahnd, CEO of Swiss Prime Site, comments: "We are aware of the implications of our decision, have taken it after careful consideration and are communicating it at an early stage. This will give employees time for any professional reorientation. In the meantime, we will accompany them professionally and provide them with the best possible support." Nina Müller, CEO of Jelmoli, will hand over the management of the department store to new hands at her own request in the spring or by the end of June 2023 at the latest. As a result, Jelmoli will also no longer be represented on the Group Executive Board of Swiss Prime Site. Reto Braegger, currently Chief Merchandise Officer, will seamlessly take over the management of Jelmoli.