Too few customers: Simmel at Dresden main station reduces sales area

Dresden. A huge sales area with dozens of types of beer alone, a large selection of fruit and vegetables and fresh produce in the refrigerated counters - shoppers at the Simmel-Center on Wiener Platz are spoiled for choice. With around 60,000 items, the range is so extensive that customers can spend several hours here and always discover something new.

Items are on the shelf for too long

Unfortunately, too few customers come to the store diagonally opposite the main train station. As a result, Peter Simmel has reduced the sales area of around 4,500 square meters by a quarter. "We weren't generating enough sales for the large space, which meant that the items were on the shelves for too long and therefore the shelf life for customers was shorter than our guidelines describe," says the experienced retailer.

The catering area also had to be closed, along with others in the store.

Source: Rene Meinig

The catering area also failed to achieve the targeted turnover and was therefore closed. "We are missing out on the sales we had planned." Before building the store, which opened in September 2021, Simmel had a comprehensive site analysis carried out. Among other things, this analysis assumed that a long-distance bus terminal with a bicycle parking garage and offices would be built relatively soon after the store opened on Wiener Platz. However, its construction has been delayed. "Unfortunately, our hopes were not fulfilled," says Simmel. And the "Meininger" hotel, which is located above the market, apparently does not attract enough customers to make the market profitable.

Advertising on all channels without success

It is not as if the entrepreneur has done nothing to attract more customers to the store on Wiener Platz. He has tried a whole range of advertising measures: flyers, advertising in streetcars and on large billboards. He has also advertised on Radio Dresden and on social media. "Sometimes with crazy special prices." Even the fact that the market square became the venue for two Dixieland festivals did not bring the hoped-for breakthrough.

"In some locations, it took us five years to stop making losses." - Peter Simmel, retailer

This is why Simmel has now pulled the ripcord. He wants to continue renting out the separate area and is in talks with several interested parties. "Our aim is for it to remain retail space. But if that doesn't work out, we already have inquiries for office space."

Peter Simmel is looking for retail tenants for the vacant space. If these do not come, there are already inquiries for offices.

Source: Rene Meinig

Closing the market is out of the question

One of the reasons why too few customers come to the Simmel-Center could also be the access to the parking garage, which is not easy when coming out of the tunnel at Wiener Platz. Drivers there have to drive back along Ammonstraße, even though there is a left-turn lane. But is this really an obvious reason? According to center manager Susann Seidel, many customers also used the multi-storey parking lot during the Christmas shopping season, which went very well at Wiener Platz. This is also open at weekends.

Peter Simmel has never considered an alternative: closing the market at the main station. "That's out of the question for us," he says. "In some locations, it took us five years to stop making losses."

Start of construction at the long-distance bus terminal in April

The fact that construction of the long-distance bus terminal is due to start soon could help. "We want to start construction in 2025," says Ingo Seidemann, Managing Director of S&G Development GmbH, which wants to build the terminal including the bicycle parking garage. "Work on the access road should start as early as April." According to S&G Development's initial plans, construction of the long-distance bus station was due to start in 2023, which did not work out. Planning permission was then granted in summer 2024. "The project has been delayed due to the general economic situation," says Seidemann.

The so-called network hub is to extend from the west side of the main station to the Budapester Straße slip road. A 43-metre high-rise building with offices will be built there. There will also be a bicycle parking garage with 800 parking spaces, charging stations and services for cyclists. The long-distance bus terminal will have ten platforms. A new streetcar stop will be set up directly in front of the terminal.

Successful markets at Albertplatz and in Bannewitz

Before all this is finished, Peter Simmel will continue to think about how to revitalize his market. He no longer needs this for the Simmel Center on Albertplatz. "It's going strong as planned and we're enjoying it." Just like the store in Bannewitz, which only opened in December 2022 and for which Simmel converted the former Real store. After estimating at the end of 2023 that there were still too few customers, he now says: "Our Bannewitz store is developing magnificently." However, he is now planning to use individual areas for an engineering office and a physiotherapy practice. The municipality is working on a change to the development plan for this.

SZ