Intershop

Intershop was a government-owned retail chain in the German Democratic Republic (GDR, or East Germany) that operated from 1962 until German reunification in 1990. Its central purpose was to obtain hard currency for the East German state by selling imported Western goods, and in some cases high-quality East German products, to travelers and other customers able to pay in convertible currencies. The East German mark was initially not accepted in Intershops. Payments were made in currencies such as West German marks, United States dollars, pounds sterling, and Swiss francs; from 1979, East German citizens generally used Forum checks obtained by converting foreign currency through the state banking system. The chain began with mobile sales carts at Berlin Friedrichstraße station, where tax-free cigarettes were sold to travelers from the West. It subsequently expanded its assortment to include liquor, tobacco, coffee, perfumes, clothing, watches, jewelry, household appliances, consumer electronics, and automobile accessories. Some products were manufactured in East Germany, exported to obtain foreign currency, and then re-imported for sale through Intershop. These goods could occasionally be cheaper than comparable products in West Germany, although many remained expensive relative to East German incomes. Intershops were placed where foreign visitors were most accessible: railway stations, airports, ferry terminals, border crossings, highway rest areas, transit routes, hotels, and other transport facilities. The chain also operated in Interhotels serving Western visitors, sometimes offering room-service purchases. A particularly unusual location was a kiosk on the platform of the U6 underground line at Berlin Friedrichstraße, designed for West Berlin travelers who could shop without formally passing through GDR border controls. The customer base changed over time. The original target was Western tourists, diplomats, and other foreigners in transit. In 1974, regulations were relaxed so that East German citizens could possess foreign currency and shop in many Intershops, although restrictions remained at certain transit stores and for specific duty-free categories. Access nevertheless depended on receiving currency from relatives in the West, earning it through work abroad, or otherwise obtaining foreign exchange. This created a visible consumption divide between people with access to hard currency and the majority who did not have it. The government acknowledged the resulting inequality while defending the stores as a way to retain money brought into the country by foreign visitors. Intershop also exposed East Germans to a visible range of Western consumer products that were generally unavailable in ordinary state shops. This comparison contributed to perceptions of shortages and lower living standards inside the GDR. The chain was closely monitored by the Ministry for State Security (Stasi), and stores faced theft, robbery, employee misconduct, and concerns about the handling of foreign currency. By the 1980s, some workers received part of their compensation in hard currency, while rules required employees to surrender tips. Intershops disappeared in 1990 after German reunification and the replacement of the GDR's economic and monetary system.

Intershop was founded on 14 December 1962 as a Volkseigener Betrieb, or publicly owned enterprise, in the German Democratic Republic. It was initially organized as a division of Mitropa, the state company associated with catering services for the East German railway system. The commercial rationale was straightforward: the GDR suffered from chronic shortages of convertible currency, and even modest purchases by foreign visitors could provide useful foreign exchange. The first Intershop sales points were mobile carts at Berlin Friedrichstraße railway station, where travelers could buy inexpensive tax-free cigarettes. Alcohol and other imported products were added soon afterward, and reported annual sales exceeded one million West German marks during the early period. The chain expanded alongside East Germany's efforts to attract Western visitors. When the first Interhotels were established for foreign tourists, Intershops appeared in or near those hotels and sometimes supplied goods through room service. Stores later spread across railway and bus stations, airports, ferry terminals, border crossings, highway rest areas, and transit corridors. Their location strategy reflected the political and economic purpose of the business: the stores were positioned to reach foreigners carrying convertible money while remaining separated from the ordinary domestic retail system. In the 1980s, an Intershop kiosk at the Berlin Friedrichstraße U-Bahn station even served West Berlin travelers who could make purchases without leaving the transit area to pass through GDR border controls. Intershop's assortment included cigarettes, liquor, coffee, perfume, clothing, watches, jewelry, household appliances, consumer electronics, and automobile accessories. The chain sold goods imported from Western countries, but it also sold some East German products that had first been exported and then brought back into the country. This arrangement allowed the state to earn foreign currency while making selected goods available through a premium channel. Prices were not uniformly low: tobacco, spirits, and other duty-free products could be cheaper than in West Germany, while goods of particular interest to East German residents could remain costly in relation to domestic wages. At first, East German citizens were generally prohibited from holding foreign currency and were therefore excluded from most Intershop purchases. A 1974 policy change relaxed this restriction. Citizens could then shop in many stores if they had foreign currency, although transit shops often remained reserved for travelers from non-socialist countries and required travel documents. Certain categories, including tobacco, spirits, coffee, perfume, branded clothing, watches, and jewelry, continued to be subject to passport or customer-status restrictions. In April 1979, customers were required to exchange foreign currency through the Staatsbank der DDR for Forum checks, valued at parity with the West German mark and used in place of direct foreign-currency payment. Forum Außenhandelsgesellschaft mbH subsequently managed the Intershop system and had approximately 900 employees. The existence of Intershop produced consequences beyond revenue generation. The stores gave East Germans a direct view of Western brands, packaging, fashion, technology, and consumer expectations. This made the contrast with the narrower selection in ordinary state shops more visible. Access to foreign currency created a recognizable social distinction between households that received remittances or gifts from the West and those that did not. The government recognized the inequality but defended the chain as a practical means of retaining money spent by the millions of visitors from capitalist countries. Intershop's consumer imagery also contributed to labor tensions, as some workers sought to receive part of their wages in hard currency. Security was a major concern. The Ministry for State Security monitored the stores, their staff, and the movement of merchandise. Relatives of officials or Stasi employees were reportedly employed in some shops, and stores could use surveillance cameras and passport checks. Theft, armed robbery, and employee involvement in crimes were investigated jointly by the Stasi and ordinary police. During the 1980s, some Intershop employees received part of their pay in hard currency, while regulations required them to surrender tips, measures intended to reduce incentives for theft and illicit dealing. Photography inside the stores was prohibited, leaving Stasi records and a limited number of images by outside photographers as important documentation. Intershop remained a symbol of the contradictions of the East German economic system: it was a state retail institution designed to serve foreign-currency needs, yet it also offered citizens evidence of the material differences between East and West. The chain was dissolved in 1990 following German reunification, when its specialized currency regime and state-socialist ownership structure no longer existed.

• 1990

  Intershop is dissolved

  [1]Intershopen.wikipedia.org

  The chain closes following German reunification and the end of the GDR's separate economic and monetary system.

• 1979

  Forum checks become the principal domestic payment instrument

  [1]Intershopen.wikipedia.org

  East Germans must convert hard currency through the state bank into Forum checks for purchases in Intershops.

• 1978

  The chain reaches approximately 100 stores

  [1]Intershopen.wikipedia.org

  Reported Intershop locations number about 100 across East Germany, including transport facilities and hotels.

• 1974

  Foreign-currency restrictions are relaxed

  [1]Intershopen.wikipedia.org

  East German citizens are permitted to hold foreign currency and shop in most Intershops, subject to continuing restrictions at transit stores and for selected goods.

• 1962

  Intershop is founded

  [1]Intershopen.wikipedia.org

  The GDR establishes Intershop on 14 December as a publicly owned enterprise intended to earn convertible currency from foreign visitors.

• 1962

  First sales carts operate at Friedrichstraße station

  [1]Intershopen.wikipedia.org

  The first sales points appear as mobile carts in Berlin Friedrichstraße station, initially selling tax-free cigarettes to Western travelers.

A state-controlled, hard-currency retail channel combining duty-free travel shopping with restricted access to Western-style consumer goods.

• Tobacco · 1962

  Imported tobacco and cigarettes

  Tobacco was among Intershop's earliest and most characteristic offerings. Tax-free cigarettes were sold to foreign travelers from the chain's first mobile carts at Berlin Friedrichstraße station. Tobacco products remained a restricted category in some locations, where purchases could require a foreign passport or proof that the customer was traveling from a non-socialist country.

• Beverages · 1962

  Liquor and alcoholic beverages

  Alcoholic drinks were added after the initial cigarette trade and became part of the chain's duty-free assortment. They were sold primarily to customers with convertible currency and could be priced attractively compared with equivalent products in West Germany, while access for East German residents remained dependent on currency and location-specific rules.

• General merchandise · 1962

  Western consumer goods

  Intershops offered a broad selection of goods associated with Western consumption, including appliances, consumer electronics, clothing, perfume, watches, jewelry, and automobile accessories. The range varied by store and location. These products gave East German customers who possessed foreign currency an opportunity to buy items that were scarce or unavailable in regular state-run shops.

• Domestic manufactured goods

  Re-imported East German goods

  Some products made in East Germany were exported and subsequently re-imported for sale through Intershop. This circular trade allowed the state to monetize selected domestic products in convertible currency and could result in goods being available through Intershop at prices lower than those charged for the same items in ordinary domestic shops.

• 1990

  Close the Intershop networkOther

  Background

  German reunification ended the GDR's separate currency, ownership, and retail structures.

  Action taken

  Intershops were dissolved.

  Aftermath

  The specialized hard-currency retail model disappeared with the GDR.

  Source

• 1979

  Introduce Forum checksStrategy

  Background

  The state sought greater control over the conversion and circulation of foreign currency used by East German customers.

  Action taken

  Customers were required to exchange hard currency through the Staatsbank der DDR for Forum checks, which could be spent in Intershops.

  Aftermath

  The payment system centralized foreign-currency handling and formalized the role of Forum Außenhandelsgesellschaft mbH in managing the chain.

  Source

• 1974

  Broaden access for East German customersStrategy

  Background

  Intershop had originally focused on Western visitors because East German citizens were generally barred from holding foreign currency.

  Action taken

  The GDR relaxed the foreign-currency rules so that citizens could shop in most Intershops, while retaining controls at transit stores and for certain duty-free products.

  Aftermath

  The change expanded the chain's domestic relevance but made currency-based inequality and differences in consumer access more visible.

  Source

1. 1Intershopen.wikipedia.org
2. 2Intershop – Der kleine Westenmdr.de