After more than 140 years in business, Smith & Caughey’s—one of New Zealand’s oldest department stores—has announced it will permanently close its doors by the end of July.
The decision to shut down the flagship Queen Street store and its online platform comes after the most recent consultation with staff regarding the company’s future sustainability.
The closure will lead to 98 employees being made redundant.
In an earlier statement, Tony Caughey, chairperson of Smith & Caughey’s, explained that the company’s physical stores had seen a 40% drop in revenue over the last five years, attributing this decline to “factors largely beyond our control”.
Caughey described the situation as a “perfect storm” of challenges. He explained that shifts in the retail environment, such as the emergence of new shopping malls, have drawn customers away from prestigious department stores. Additionally, he pointed out that the post-COVID pandemic period has seen a reduction in the number of office workers in the city center, while continuous roadworks and local developments have further disrupted the shopping experience.
“As a result, the company is trading at a significant loss, which is unsustainable. We do not believe sales can be restored to levels necessary to continue to operate.”
In an effort to preserve the business, the Queen Street store was reduced to just one floor in February, and the Newmarket store was closed last year.
“Our intention has always been to address the business challenges so that Smith & Caughey’s can continue,” acting chief executive Matt Harray said today.
“Every attempt has been made to achieve this, and every feasible option investigated, no stone left unturned.”
“However, it’s sadly clear it is no longer viable for us to keep the doors open.”
“We are acutely aware that this has been a difficult and uncertain time for our staff, and today’s announcement is a deeply emotional one for all the team, our suppliers and our loyal customers.”