Swiss Prime Site plans new start for Jelmoli building
Swiss Prime Site has presented plans for the repositioning of the Jelmoli building on Zurich's Bahnhofstrasse. The department store will close at the end of 2024, and office space is to be created on the upper floors.
After the refurbishment, there will be 10,000 square meters of retail space. The space will be used partly by existing tenants and partly by new brands and formats. In addition to offices, part of the upper floors will also accommodate public uses such as fitness or gastronomy. SPS plans to spend a total of CHF 100 million on the transformation of the building. The transformation is scheduled for completion in early 2027.
"The decision to convert the building and make it fit for the future was taken after profound and comprehensive analysis," SPS wrote in a statement. The growing online trade and new consumer patterns had also affected the profitability of the Jelmoli building in Zurich's prime location. SPS no longer plans to continue operating it itself. It is also announced that Jelmoli CEO Nina Müller will relinquish management of the department store "in the spring or by the end of June 2023 at the latest." Reto Braegger, currently Chief Merchandise Officer, will take over the management of Jelmoli.
Special charges of CHF 34 million
The transformation project "Jelmoli-Haus" will have a one-off impact of around CHF 34 million on Swiss Prime Site's income statement in the financial year 2022. This amount includes exclusively non-cash value adjustments and special write-downs - including for equipment, furniture, IT, and inventories. Despite the special charges, however, SPS will achieve its targets for 2022, it says. The business figures will be published on February 9. (aw)
