Few films capture the magic of Christmas as perfectly asIt’s a Wonderful Life– but audiences can still find ways to celebrate the season with classics likeThe Shop Around the Corner. For decades, Jimmy Stewart’s portrayal of George Bailey has warmed hearts around the world, cementing its reputation as one of thegreatest holiday movies of all time. However, for those looking for another classiccareer-defining Jimmy StewartChristmas movie to add to their holiday watchlist, look no further thanThe Shop Around the Corner.
With a near-perfect 99% rating on Rotten Tomatoes,this romantic comedy-drama is a hidden gemthat blends charming storytelling with a festive holiday backdrop. WhileThe Shop Around the Cornermight not shout “Christmas” from the rooftops likeIt’s a Wonderful Life, the movie’s setting and themes make it a perfect seasonal pick.

Shop Around The Corner Is A James Stewart Romance Movie Set At Christmas
The Holidays Are An Ever-Present Element Of This Delightful Seasonal Gem
Released in 1940 and directed by Ernst Lubitsch, the film takes place in Budapest during the weeks leading up to Christmas. Stewart plays Alfred Kralik, a clerk in a small gift shop who unknowingly falls in love with his pen pal, only to discover that she is his co-worker, the spirited and opinionated Klara Novak (played by Margaret Sullavan).
At its core,The Shop Around the Corneris a story about love, misunderstandings, and discovering what truly matters in life — a narrative that alwaysfeels right at home alongside other timeless Christmas classics. The plot centers on the employees of Matuschek & Company, the quaint little shop where Alfred and Klara’s rivalry unfolds. By day, the two clash endlessly, finding fault with each other’s every move. But by night, they exchange heartfelt letters as anonymous pen pals, sharing their dreams and fears with someone they believe they’ve never met.

This clever “enemies-to-lovers” trope is executed with the level of charm that classic Hollywood specializes in. Stewart and Sullavan’s chemistry is undeniable, and their performances bring both humor and depth to their characters.
The film also delivers its fair share of laughs, thanks to a charismatic supporting cast and Lubitsch’s signature style of comedic timing, often referred to as “the Lubitsch touch.” Whileit’s easy to appreciateThe Shop Around the Corneras a lighthearted romantic comedy, it also offers poignant commentary on trust, honesty, and the value of human connection, timeless themes that resonate just as strongly today.

Shop Around The Corner Is The Perfect Movie To Watch At Christmas
Though it doesn’t wear its Christmas themes as prominently asIt’s a Wonderful Life,The Shop Around the Corneris undeniably infused with holiday cheer, exploring heartfelt human connections while maintaining a touch of whimsy. Thefestive atmosphere shines throughthe shop’s wintry decor and bustling energy, making it impossible not to feel the holiday spirit while watching.
The film balances these light-hearted moments with touching emotional beats, particularly as Alfred and Klara’s relationship evolves. There’s something inherently magical about watching their story unfold against the backdrop of snow-dusted streets and twinkle-lit shop windows, a constant reminder that some of the best holiday films don’t need Santa Claus or overt seasonal messages to capture the Christmas spirit.

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For fans of feel-good holiday movies,The Shop Around the Corneroffers the perfect blend of romance, humor, and heartfelt moments. It’s a film that invites you to curl up with a warm beverage, soak in the nostalgia, and enjoy a story that feels as timeless as the season itself.

Shop Around The Corner Is One Of Jimmy Stewart’s Best Movies
It Absolutely Belongs on Every Christmas Watchlist
It also never hurts to have one of Hollywood’s all-time favorite good guys front and center. While Jimmy Stewart will likely always be best known as George Bailey inIt’s a Wonderful Life, his performance inThe Shop Around the Corneris equally captivating. He brings Alfred to life with his signature mix of sincerity, charm, and relatability, capturing the character’s insecurities and growth with his typically effortless nuance.
Stewart’s Alfred demonstrates exactly why he remains one of Hollywood’s most beloved actors. His blend of humor and humanity shines, creating a character who is both flawed and endearing. Whether he’s delivering sharp-witted banter or quietly conveying moments of vulnerability, Stewart’s performance reminds audiences why he’s one of the greats.
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It’s not just audiences who adoreThe Shop Around the Corner—critics do too. The film’s 99% rating on Rotten Tomatoes is a testament to its enduring appeal. In fact, the appeal works so well that the movie has been remade multiple times, including a musical version (1949’sIn the Good Old Summertime).
The much beloved 1998 Tom Hanks-Meg Ryan rom-comYou’ve Got Mailnot only pulls its story fromShopbut also gives a not-so-subtle nod to the original by christening Ryan’s independent book store in the film The Shop Around the Corner. Whether a diehard fan ofIt’s a Wonderful Lifeor simply looking for a new classic to add to the holiday lineup,The Shop Around the Cornerdeserves a spot on anyone’s viewing list.
The Shop Around the Corner
Cast
The Shop Around the Corner, directed by Ernst Lubitsch, follows the lives of two employees at a Budapest gift shop who unknowingly become pen pals and fall in love through their anonymous letters. Starring James Stewart and Margaret Sullavan, this 1940 romantic comedy offers a charming exploration of mistaken identities and blossoming affection against the backdrop of an elegantly depicted pre-war Budapest.