Closure partly blamed on many city workers still working from home post-Covid
Auckland department store Smith & Caughey's will be shutting its doors for good on 31 July after 145 years in business.
Its store on Queen Street will shut down on July 31, following its online store's closure on Tuesday, according to a company announcement last week.
"The closure of our Queen Street retail and online store will result in 98 redundancies," it said.
Matt Harray, acting chief executive of Smith & Caughey's, said the closure comes after it became clear that it is "no longer viable for us to keep the doors open".
"Our intention has always been to address the business challenges so that Smith & Caughey's can continue. Every attempt has been made to achieve this and every feasible option investigated, no stone left unturned," he said in a statement.
"While we all hoped that the changes we made to the business in the latter part of 2024, including reducing and curating the Queen Street offering and closing the Newmarket store, would allow for an improvement in the financial position of the company, unfortunately this has not been the case."
The company first proposed to staff the potential closure of its retail operations in May 2024.
"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," Harray said last week.
"This is a heartbreaking decision, and our attention right now is on our staff."
The company cited a range of external factors that led to the company's shutdown, including increased competition from new shopping malls, economic uncertainty, and lower consumer confidence.
"In addition, many city office workers are continuing to work from home post the COVID pandemic," the company said.
It also attributed the shutdown to ongoing roadworks, as well as traffic congestion due to the ongoing construction of the City Rail Link.
"Similarly, perceived safety issues, a large decline in foot traffic on Queen Street, and an increase in parking costs, have all continued to impact the economic position of our business," it added.
Smith & Caughey's has been in business on Queen Street for more than 144 years. Its shutdown being partly attributed to remote work highlights the arrangement's impact on foot traffic and businesses.
Last year, businesses in New Zealand welcomed the government's order to bring back public servants onsite amid lower foot traffic in Central Business Districts.
