Intershop
Encyclopedia
Intershop was a chain of government-run retail stores in the German Democratic Republic
(GDR, East Germany) in which only hard currencies
(and later Forum Check
s) could be used to purchase high-quality goods. The East German mark
was not accepted as payment. Intershop was originally oriented towards visitors from Western countries, and later as an outlet where East Germans could purchase goods they could not otherwise obtain. An unintended consequence
was that ordinary East Germans had some insight into the selection of goods available in the West, which they could then compare with the rather limited offerings available in their own country.
- VEB). Its purpose was to increase the flow of hard currency into the GDR. There was such a lack of hard currency that even small amounts were welcome and this was a big problem. The groups targeted were mainly tourists and other foreigners in transit from the West. The first mobile carts were in the Berlin Friedrichstraße station. There, cigarettes were sold for a much less than was available in West Berlin
. Little by little, alcohol and other goods were added. By 1962, annual sales totalled more than one million Deutsche Marks.
Originally, Intershop was organised as a division of Mitropa
, the company that provided catering services to the Deutsche Reichsbahn
. With the arrival of the first Interhotels, which were intended to house Western tourists, Intershops also began appearing in these Western-oriented hotels. One could also purchase items in their room (via room service) with hard currency
. Over time, these hotel-based Intershops grew as well.
Later, Intershops were opened at border crossings, rest stops and transit stops on the GDR Autobahn, railroad stations, bus stations, ferry terminals and airports. As an example of the GDR regime's desire for hard currency, in the 1980s, in the Berlin Friedrichstraße subway (U-Bahn) station, there was an Intershop kiosk on the platform of the U6 line created specifically for travellers from West Berlin who may not have wanted to pass through the GDR border controls. One could disembark from the subway, make a purchase, and then get back on the next train and go back to West Berlin, all without processing through the GDR border controls. Purchases could be paid with any fully convertible currency, such as U.S. dollars, British pounds, Swiss francs, etc., and especially the West German mark. The selection included food, alcohol, tobacco, clothing, toys, jewelry, cosmetics, technical devices, music recordings and much more. These products could not be purchased, or could only be purchased at lower quality, using East German mark
s, although the majority of these goods were produced in East Germany for sale to Western companies.
Until 1974, GDR citizens were not allowed to hold foreign currency. By decree of the Council of Ministers of the GDR (Ministerrat der DDR), this ban was relaxed in that year, and East Germans were then allowed to shop in most Intershops. The Intershops at Autobahn rest stops (so-called "Transitshops"), which were sometimes self-service, were still only for travellers from non-socialist countries and required travel document
s for entry. Additionally, certain duty-free items such as tobacco, spirits, coffee, perfume, brand name clothing, watches and jewellery required a foreign passport. The prices for these goods were significantly less than in West Germany or West Berlin, while the other goods that would have interested East Germans were relatively expensive. East Germans could not legally exchange East German marks for hard currency. The only legal ways for East Germans to acquire hard currency were either gifts from relatives living in the West or wages earned for work in Western countries. In 1974, there were 271 Intershops. In 1977, Erich Honecker
publicly denounced the Intershops in a speech on East German state television. Nevertheless, many East Germans continued to shop there for the variety, desirability, and quality of goods. The Intershops acted as a sort of safety valve to deal, albeit in a limited way, with the pent-up demand of East German consumers for desirable, quality consumer goods.
Starting in April 1979, East Germans were required to convert hard currency at the East German state bank (Staatsbank der DDR) into so-called forum checks. A forum check mark had a value of one West German mark. The Forum Außenhandelsgesellschaft mbH was responsible for the management of Intershops and had 900 employees.
In the 1980s, there were 380 Intershop locations and the revenues were in the billions of DM. In addition, for East Germans without hard currency, there were 300 Exquisit shops (which sold higher priced clothing, shoes and cosmetics) from 1962 and 550 Delikat shops (which sold high end and gourmet food items) from 1976. Most of the goods sold in Exquisit and Delikat shops were of East German origin but were normally unavailable in the regular state-run stores. These shops were intended to give East Germans access to high-quality goods and to absorb surplus purchasing power.
The Ministry of State Security (Stasi
) monitored the Intershops very closely, relatives of Stasi employees or officials often working as cashiers. In some stores, security cameras were present and in the beginning, passports were even checked. The transport of these goods was also closely monitored. Even so, there were numerous thefts and even some armed robberies of Intershop stores. The investigations of these crimes always involved the Stasi as well as the regular police. In many cases, store managers and employees were involved in the crimes. Beginning in the 1980s, a portion of the salary of Intershop workers was paid in hard currency and additionally employees had to surrender their tips, according to firm regulations, in order to curb these problems.
Because photographing in Intershops was not allowed, there are only a very small number of photographs of the inside of the stores. Most of those that do exist are from the Stasi archives. The West German photographer, Günter Schneider, collected numerous photos of Intershops while working on a larger report about the transit corridors in East Germany.
German Democratic Republic
The German Democratic Republic , informally called East Germany by West Germany and other countries, was a socialist state established in 1949 in the Soviet zone of occupied Germany, including East Berlin of the Allied-occupied capital city...
(GDR, East Germany) in which only hard currencies
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
(and later Forum Check
Forum check
Forum checks were a form of hard currency in East Germany. By law all East Germans had to convert immediately any Deutsche Marks they possessed into Forum checks at the state bank since 1979. A Forum check mark was worth 1 Deutsche Mark...
s) could be used to purchase high-quality goods. The East German mark
East German mark
The East German mark commonly called the eastern mark , in East Germany only Mark, was the currency of the German Democratic Republic . Its ISO 4217 currency code was DDM...
was not accepted as payment. Intershop was originally oriented towards visitors from Western countries, and later as an outlet where East Germans could purchase goods they could not otherwise obtain. An unintended consequence
Unintended consequence
In the social sciences, unintended consequences are outcomes that are not the outcomes intended by a purposeful action. The concept has long existed but was named and popularised in the 20th century by American sociologist Robert K. Merton...
was that ordinary East Germans had some insight into the selection of goods available in the West, which they could then compare with the rather limited offerings available in their own country.
History
Intershop was founded on 14 December 1962 as a publicly owned company (Volkseigener BetriebVolkseigener Betrieb
The Volkseigener Betrieb was the legal form of industrial enterprise in East Germany...
- VEB). Its purpose was to increase the flow of hard currency into the GDR. There was such a lack of hard currency that even small amounts were welcome and this was a big problem. The groups targeted were mainly tourists and other foreigners in transit from the West. The first mobile carts were in the Berlin Friedrichstraße station. There, cigarettes were sold for a much less than was available in West Berlin
West Berlin
West Berlin was a political exclave that existed between 1949 and 1990. It comprised the western regions of Berlin, which were bordered by East Berlin and parts of East Germany. West Berlin consisted of the American, British, and French occupation sectors, which had been established in 1945...
. Little by little, alcohol and other goods were added. By 1962, annual sales totalled more than one million Deutsche Marks.
Originally, Intershop was organised as a division of Mitropa
Mitropa
Mitropa is a catering company best known for having managed sleeping and dining cars of different German railways for most of the 20th century. Since its reorganization in 2002, the company only provides stationary food services for rail and road customers. The name Mitropa is a derivative of ""...
, the company that provided catering services to the Deutsche Reichsbahn
Deutsche Reichsbahn of the GDR
The Deutsche Reichsbahn or DR was the operating name of state owned railways in the German Democratic Republic ....
. With the arrival of the first Interhotels, which were intended to house Western tourists, Intershops also began appearing in these Western-oriented hotels. One could also purchase items in their room (via room service) with hard currency
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
. Over time, these hotel-based Intershops grew as well.
Later, Intershops were opened at border crossings, rest stops and transit stops on the GDR Autobahn, railroad stations, bus stations, ferry terminals and airports. As an example of the GDR regime's desire for hard currency, in the 1980s, in the Berlin Friedrichstraße subway (U-Bahn) station, there was an Intershop kiosk on the platform of the U6 line created specifically for travellers from West Berlin who may not have wanted to pass through the GDR border controls. One could disembark from the subway, make a purchase, and then get back on the next train and go back to West Berlin, all without processing through the GDR border controls. Purchases could be paid with any fully convertible currency, such as U.S. dollars, British pounds, Swiss francs, etc., and especially the West German mark. The selection included food, alcohol, tobacco, clothing, toys, jewelry, cosmetics, technical devices, music recordings and much more. These products could not be purchased, or could only be purchased at lower quality, using East German mark
East German mark
The East German mark commonly called the eastern mark , in East Germany only Mark, was the currency of the German Democratic Republic . Its ISO 4217 currency code was DDM...
s, although the majority of these goods were produced in East Germany for sale to Western companies.
Until 1974, GDR citizens were not allowed to hold foreign currency. By decree of the Council of Ministers of the GDR (Ministerrat der DDR), this ban was relaxed in that year, and East Germans were then allowed to shop in most Intershops. The Intershops at Autobahn rest stops (so-called "Transitshops"), which were sometimes self-service, were still only for travellers from non-socialist countries and required travel document
Travel document
A travel document is an identity document issued by a government or international treaty organization to facilitate the movement of individuals or small groups of persons across international boundaries...
s for entry. Additionally, certain duty-free items such as tobacco, spirits, coffee, perfume, brand name clothing, watches and jewellery required a foreign passport. The prices for these goods were significantly less than in West Germany or West Berlin, while the other goods that would have interested East Germans were relatively expensive. East Germans could not legally exchange East German marks for hard currency. The only legal ways for East Germans to acquire hard currency were either gifts from relatives living in the West or wages earned for work in Western countries. In 1974, there were 271 Intershops. In 1977, Erich Honecker
Erich Honecker
Erich Honecker was a German communist politician who led the German Democratic Republic as General Secretary of the Socialist Unity Party from 1971 until 1989, serving as Head of State as well from Willi Stoph's relinquishment of that post in 1976....
publicly denounced the Intershops in a speech on East German state television. Nevertheless, many East Germans continued to shop there for the variety, desirability, and quality of goods. The Intershops acted as a sort of safety valve to deal, albeit in a limited way, with the pent-up demand of East German consumers for desirable, quality consumer goods.
Starting in April 1979, East Germans were required to convert hard currency at the East German state bank (Staatsbank der DDR) into so-called forum checks. A forum check mark had a value of one West German mark. The Forum Außenhandelsgesellschaft mbH was responsible for the management of Intershops and had 900 employees.
In the 1980s, there were 380 Intershop locations and the revenues were in the billions of DM. In addition, for East Germans without hard currency, there were 300 Exquisit shops (which sold higher priced clothing, shoes and cosmetics) from 1962 and 550 Delikat shops (which sold high end and gourmet food items) from 1976. Most of the goods sold in Exquisit and Delikat shops were of East German origin but were normally unavailable in the regular state-run stores. These shops were intended to give East Germans access to high-quality goods and to absorb surplus purchasing power.
The Ministry of State Security (Stasi
Stasi
The Ministry for State Security The Ministry for State Security The Ministry for State Security (German: Ministerium für Staatssicherheit (MfS), commonly known as the Stasi (abbreviation , literally State Security), was the official state security service of East Germany. The MfS was headquartered...
) monitored the Intershops very closely, relatives of Stasi employees or officials often working as cashiers. In some stores, security cameras were present and in the beginning, passports were even checked. The transport of these goods was also closely monitored. Even so, there were numerous thefts and even some armed robberies of Intershop stores. The investigations of these crimes always involved the Stasi as well as the regular police. In many cases, store managers and employees were involved in the crimes. Beginning in the 1980s, a portion of the salary of Intershop workers was paid in hard currency and additionally employees had to surrender their tips, according to firm regulations, in order to curb these problems.
Because photographing in Intershops was not allowed, there are only a very small number of photographs of the inside of the stores. Most of those that do exist are from the Stasi archives. The West German photographer, Günter Schneider, collected numerous photos of Intershops while working on a larger report about the transit corridors in East Germany.
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Further reading
- Jonathan R. Zatlin, The Currency of Socialism - Money and Political Culture in East Germany. Cambridge University Press 2007 ISBN 0-521-86956-0