What: Christopher Knee, an Honorary Adviser at the International Association of Department Stores, argues against the notion that the department store business model is inherently flawed. Instead, he points to real estate owners' detrimental impact on these retail institutions, as seen in notable cases like Jelmoli and Globus in Zurich.

Why it is important: This perspective shifts the blame from the retail model itself to the practices of real estate investors who leverage department store properties for their gain. Knee highlights instances where department stores suffered not because of their operational model but due to the financial strategies and high rents imposed by property owners. This situation has been particularly pronounced in the UK with the collapse of Debenhams, BHS, and House of Fraser, among others.

Christopher Knee's letter to the Financial Times challenges the narrative of department stores' decline due to outdated business models. He provides examples from Zurich and the UK where real estate strategies, rather than retail mismanagement, led to the downfall of historic department stores. Knee's insights call for a reevaluation of the challenges facing department stores, emphasizing the need to distinguish between retail failures and the consequences of real estate exploitation.

Letter: Blame real estate owners for the woes of department stores