PHOTO: Smith & Caughey’s
Auckland‘s iconic department store, Smith & Caughey’s, is slated to close early next year.
Chairman Tony Caughey announced that the company has initiated a consultation process with its staff regarding the potential closure of its retail operations on Queen St, Newmarket, and its online store, likely in early 2025.
The consultation period, announced to 240 staff on Wednesday morning, will last approximately five weeks.
“Presenting this proposal has been deeply emotional for those connected to this historic establishment. We are acutely aware of the impact on staff, customers, and suppliers,” said Caughey.
The announcement comes amid a broader struggle for retail businesses across the country, with Kiwis spending less and a rising demand for insolvency services. Spending data reveals that while expenditure on retail, furniture, and hospitality decreased last year, spending on food and liquor increased.
Smith & Caughey’s has been a cornerstone of retail excellence on Queen St for 144 years. The company, founded in 1880 by Marianne Smith, her husband William Smith, and her brother Andrew Caughey, has seen a significant decline in revenue over the past five years.
“Over the last five years, we have experienced a 40 percent decline in revenue from our physical stores due to factors largely beyond our control, leading to unsustainable losses,” said Caughey. “Sadly, we do not believe sales can be restored to the necessary levels for continued operation.”
In the past two years, the company engaged professional advisers to explore strategic options for its future viability. Unfortunately, they concluded that this is not a storm to be weathered.
Caughey also acknowledged the store’s role in family traditions, particularly the annual Christmas experience. Despite the potential closure, the store intends to offer its traditional Christmas windows, Santa’s Enchanted Forest, and Santa Claus himself, before closing in early 2025.
The Queen St and Newmarket stores will remain closed for the rest of Wednesday but will reopen as usual on Thursday.