The Shop Around the Corner

Alfred Kralik and Klara Novak begin working together at Matuschek's gift store in Budapest. Their daily interactions are filled with irritation, but unbeknownst to them, they each have a secret pen pal, exchanging heartfelt letters and longing for a personal connection.

As Christmas approaches, the store becomes increasingly busy, heightening the tension between Alfred and Klara. Meanwhile, their secret correspondence continues, deepening their unknown connection while they fight with each other at work.

Alfred's long-standing relationship with Mr. Matuschek takes a turn when he is unexpectedly fired. Stunned by the sudden change in his circumstances, Alfred says his goodbyes, and for the first time, has a civil interaction with Klara.

Despite his recent job loss, Alfred decides to attend the meeting that he and Klara had arranged as their pen pals. Peering through the restaurant window, he sees Klara waiting with the book and a red carnation, realizing that he misjudged her all along.

Back at the store, Mr. Matuschek is devastated after learning from a private detective that his wife has been unfaithful. Believing Alfred to be the betrayer, he is heartbroken and contemplates suicide, only to be stopped by a young delivery boy.

The following day, Alfred visits Mr. Matuschek in the hospital, where they share an emotional moment. Matuschek seeks Alfred's forgiveness and reinstates him at the store, promoting him to manager as a sign of trust.

Klara arrives at work still reeling from the disappointment of her failed meeting with her pen pal. Upon discovering Alfred is now the manager, she faints in shock, overwhelmed by the series of unexpected events.

While resting at home, Klara receives another letter from her pen pal explaining his absence at the meeting due to misinterpreting her association with Alfred. Relieved, she promises Alfred that she'll return to work the next day.

On Christmas Eve, the store buzzes with activity as everyone prepares for the holiday rush. Mr. Matuschek, nearly fully recovered, visits and is delighted to hear the store had its best sales day since 1928, rewarding everyone with bonuses.

As Klara is about to leave for another meeting with her pen pal, Alfred delays her with questions about the mysterious man. He also humorously mentions the pen pal's poor qualities, trying to make her see that he is the better choice.

In a moment of clarity, Alfred places a red carnation in his lapel, revealing his true feelings and identity as Klara's pen pal. This surprise revelation clears up the misunderstandings that plagued their interactions and sets the stage for romance.