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In Budapest, Hungary, the Matuschek and Company store is owned by Mr. Hugo Matuschek (Frank Morgan) and the bachelor Alfred Kralik (James Stewart) is his best and most experienced salesman. When Klara Novak (Margaret Sullavan) seeks a job position of saleswoman in the store, Matuschek hires her but Kralik and she do not tolerate each other. Meanwhile the lonely and dedicated Kralik has an unknown pen pal that he intends to propose very soon; however, he is fired without explanation by Matuschek in the night that he is going to meet his secret love. He goes to the bar where they have scheduled their meeting with his colleague Pirovitch (Felix Bressart) and he surprisingly finds that Klara is his correspondent; however, ashamed with the unemployment, he does not disclose his identity to her. When Matuschek discovers that he had misjudged Kralik and committed a mistake, he hires him again for the position of manager. But Klara is still fascinated with her future fiancé and does not pay much attention to Kralik.

"The Shop around the Corner" is a delightfully naive romance, and this is the type of film that deserves to be watched many times. It is charming and innocent, and James Stewart and Margaret Sullavan show a wonderful chemistry even in their arguments. I love this period of classic romantic comedies when society was satisfied with a screenplay that does not need to use sex scenes and other diversion but great dialogs supported by outstanding direction and acting. In 1998, Nora Ephron updated this film with the remake "You've Got Mail" without any reference to the work of Ernest Lubitsch. My vote is eight.

Title (Brazil): "A Loja da Esquina" ("The Shop around the Corner")

Sweet romantic drama/comedy about Stewart and Sullavan writing love letters to each other without either one knowing who the other is. Naturally, they work together and can't stand each other. You can guess the rest. It's beautifully acted by the entire cast (especially Sullavan, Stewart and Frank Morgan), has a witty, intelligent script and looks absolutely stunning. It takes place in Budapest and was shot in Hollywood, but I found myself believing I was seeing Budapest! Everything looks so perfect and dream-like. A one of a kind film. Don't miss it!

This is a movie that gets better each time I see it. There are so many nuanced performances in this. William Tracey, as Pepi, is a delight, bringing sharp comic relief. Joseph Schildkraut as Vadas, is the only "villian" in the movie, and his oily charms are well used here. Frank Morgan, is delightful as the owner of the title shop, Mr. Matuschek, and his familiar manner is well used here. I especially liked the performance of Felix Bressart, as Pirovitch. Very believable in every facet of his role.

The two leads are equally accomplished, with Margaret Sullivan doing an outstanding job of portraying a slightly desperate, neurotic, yet charming and attractive woman.

This movie belongs to Jimmy Stewart though. The movie is presented from his point of view, with the action rotating around him. Mr. Stewart is more then up to the task of carrying the movie, with an amazing performance that uses a wide range of emotions. Just watch Stewart, when he is fired from his job, because of a misunderstanding. He is able to convey the shock, anger, fear and embarrassment that so traumatic an event causes, so perfectly. In my estimation, James Stewart is, without question, the greatest film actor in the history of the medium. There is no one else that has ever been captured on film that is able to so completely convey what he is feeling to an audience. At the time he made this movie, he still had most of his career ahead of him, yet he is completely the master of his craft. This is one of Jimmy Stewarts best movies, and also one of the sweetest, most enjoyable romantic comedies you will find. I greatly recommend this movie, especially for those that appreciate the work of Stewart.

With a very good cast, a nice blend of wit and sentiment, and many other pluses, this classic remains as enjoyable and charming as ever. The fluffy but pleasant story benefits greatly from the Lubitsch touch, since he had the knack of giving significance to little things without taking them or himself too seriously. Presenting his characters honestly yet sympathetically, he makes the somewhat contrived situation seem believable and worth caring about. Its appeal comes across as almost effortless, but you only have to compare it with the less effective 90's remake to see how important the right touch is with this kind of story.

The atmosphere of life in the Budapest shop is set up efficiently and convincingly, and the cast all settle into their roles seamlessly. As the leads, Jimmy Stewart works perfectly, of course, and Margaret Sullavan conveys the right balance of spunkiness and vulnerability. Felix Bressart is invaluable, giving perhaps the finest performance among his many character roles. In some of his scenes, he barely has to say a word to make you smile. Frank Morgan is surprisingly good in a role rather different than usual for him, Joseph Schildkraut is effectively oily as the deceitful Vadas, and the others all help out, too. Lubitsch gives all of the characters a chance to come to life without pretense, just by using simple details effectively.

It all fits together very well, moves at just the right pace, and makes you a part of the characters' world. It makes for a very enjoyable movie that holds up very well even after several viewings.

All the characters are wonderfully written and distinctive, in an almost Dickensian kind of way. The portrayals are sensitive, funny but not over-sentimental. A beautiful film to watch at Christmas, in my opinion more genuine and a lot less saccharine than 'It's a Wonderful Life'.