The Shop Around the Corner (1940)

Introduction

The Shop Around the Corner is not just one of the most delightful romantic comedies ever made—it’s also a quiet masterclass in tone, character, and storytelling. Directed by the inimitable Ernst Lubitsch, it exemplifies his famed “Lubitsch Touch”: the light-handed, witty, emotionally intelligent style that could blend comedy and heartbreak with unparalleled grace.

Set in pre-war Budapest, this 1940 film adapts Miklós László’s Hungarian stage play into an exquisitely intimate portrait of human relationships. Though modest in scope and setting, it achieves something profound: a love story that is both idealized and grounded, charming and true.

Plot Summary

The story takes place almost entirely in Matuschek and Company, a small leather goods shop in Budapest. The shop’s employees are a tightly knit, occasionally quarrelsome group, presided over by the demanding and emotionally volatile Mr. Matuschek (Frank Morgan).

Among the staff are the earnest, conscientious Alfred Kralik (James Stewart), the head clerk, and the spirited Klara Novak (Margaret Sullavan), a new salesgirl with strong opinions and a sharp tongue. From the moment they meet, Kralik and Novak clash—bickering over everything from merchandise displays to manners.

Unbeknownst to them, however, they are already deeply involved with each other: both are anonymously corresponding with mysterious pen pals found through a lonely hearts club. The irony is delicious—they despise each other in person but are falling in love through the written word.

As Christmas approaches, misunderstandings, secrets, and emotional revelations threaten to upend the equilibrium at the shop—and between Kralik and Novak. The film’s resolution is as emotionally satisfying as it is understated: love blossoms not through grand gestures, but through small, sincere recognitions of character.

Performances

James Stewart is, as always, impeccable. He brings his signature blend of boyish charm, decency, and vulnerability to Alfred Kralik. His portrayal never slides into sentimentality; instead, he makes Kralik’s inner turmoil—his economic insecurity, his wounded pride, his tentative hope—feel authentic and relatable.

Margaret Sullavan matches him note for note. As Klara Novak, she’s spirited without being shrill, romantic without being naïve. Sullavan had a rare talent for emotional transparency; when she smiles or falters, we feel the weight of both. Her chemistry with Stewart is natural and sparky, filled with subtle glances, pauses, and shifts in tone that speak volumes.

The supporting cast is outstanding. Frank Morgan delivers one of his finest performances as Mr. Matuschek, transitioning from comic blowhard to a deeply human figure with quiet pathos. Felix Bressart, as the kindly clerk Pirovitch, brings warmth and quiet humour to every scene, while Joseph Schildkraut is pitch-perfect as the conniving and oily Vadas.

Direction and the “Lubitsch Touch”

Ernst Lubitsch was at the height of his creative powers in 1940, and The Shop Around the Corner may be his most emotionally direct film. While it lacks the continental glamour of Ninotchka or the risqué edge of his pre-Code works, it compensates with an intimacy and restraint that is rare in romantic comedies.

Lubitsch directs with economy and grace. There is no wasted movement, no indulgent monologue, no overplayed sentiment. The comedy arises naturally from character and situation. Lubitsch always trusted the audience’s intelligence and emotional sensitivity—and the result here is a film that never tells us how to feel, yet moves us deeply.

One of the most striking aspects of his direction is the use of space. By largely confining the action to the shop, he creates a sense of community and containment—a microcosm where every glance and word matters. The scenes are choreographed with precision, often using doorways, counters, and windows to frame characters and suggest emotional distance or closeness.

Themes

The Duality of Appearance and Identity

The central conceit—two people who despise each other in person but love each other in writing—drives a poignant meditation on how we present ourselves to the world versus who we truly are. The film subtly asks: Do we love who people are, or who we imagine them to be?

Class, Security, and Dignity

Unlike many rom-coms, Shop addresses the economic insecurities of its characters. Kralik’s anxieties about losing his job and being unable to marry are real and grounded. Lubitsch doesn’t shy away from the reality that love is not just emotional—it’s also social and financial.

Loneliness and Connection

Set in the shadow of war, the film never names the larger turmoil of Europe in 1940, but its atmosphere of melancholy and yearning is palpable. The characters’ search for love, dignity, and belonging feels urgent, particularly as Christmas approaches.

Forgiveness and Understanding

Ultimately, the film is about recognizing the humanity in others. Characters who initially appear harsh or foolish—Mr. Matuschek, Klara, even Kralik—are slowly revealed to be vulnerable, earnest people trying their best in an imperfect world.

Visual Style and Production

While modest in visual ambition, the cinematography by William H. Daniels is quietly effective. The warm lighting, especially in the shop’s interiors, contributes to the film’s sense of intimacy and cosiness. Costumes and set design are practical, working-class, and seasonally evocative without excess.

There are no extravagant flourishes—just a subtle harmony between form and feeling. This minimalism serves the story, drawing focus to the characters and their emotional journeys.

Reception and Legacy

Though not a box office smash upon its release, The Shop Around the Corner has grown in stature with time. Critics then and now have praised its script, performances, and quiet charm. Over the decades, its influence has been profound: it directly inspired the 1998 film You’ve Got Mail, and its premise echoes through countless romantic comedies.

In 1999, it was added to the National Film Registry by the Library of Congress for being “culturally, historically, or aesthetically significant.” It remains a staple on lists of the greatest love stories in film history.

Final Verdict

The Shop Around the Corner is a luminous treasure—humble in scope but vast in emotional resonance. It’s a film of wit and wisdom, of small heartbreaks and slow revelations. With two unforgettable performances and Lubitsch’s gentle, intelligent direction, it remains not just a masterpiece of the romantic comedy genre, but one of the most human films ever made.

A perfectly crafted, endlessly rewatchable gem that understands the heart in all its contradictions.