The location of the shop around the corner is precisely stated at the start of the film, Balta Street in Budapest but it could really be in any place. The small number of sets reflect a middle European design but it could be a shop around any corner. The film is not about Budapest or the retail leather goods business but about the ups and downs of love, reflected in most of the main characters.<br /><br />Alfred Kralik and Klara Novak are sparring partners at work but their anonymous letters to each other are full of hope and aspiration and romance, and the story unwinds to bring these two aspects together beautifully. Hugo Matuschek, the owner of the shop, is having trouble with his wife, she only a voice at the end of the phone. Ferencz Vadas has a secret affair. Ilona Novodny has a gentleman friend who buys her fur garments. Mr Pirovitch's life is centred around his wife and children. Pepi Katona 'plays Santa Claus' to a girl at Christmas. You even sense that quiet Flora Katchuck, while staying at home with her mother dreams of someone.<br /><br />The script is a masterpiece of comedy and drama. It moves effortlessly from scene to scene. It is one of those quiet films that repays looking at again and again, simple yet profound. The dialogue reflects the character speaking which is not common these days. <br /><br />All the acting is magnificent. Even the minor characters like the waiter in the cafe and the policeman in the street are perfect. James Stewart and Margaret Sullavan play off each other perfectly. He was really getting into his stride as an actor then and gives a sweet and sharp performance. Margaret Sullavan was a terrific actor and under appreciated these days. Some of her other films are worth catching. As Mr Matuschek, Frank Morgan is amazing. His moment of truth is very moving. Gold stars all round to the performers.<br /><br />It is a well worn phrase that they don't make them like they used to (The vague re-make 'You've Got Mail' was dire) but in this case it is true. The director Lubitsch is not in farce mode thankfully but delivered a classic film of spirit, charm and warm humanity.