Smith & Caughey’s has decided to continue operating with a reduced format instead of shutting down altogether following the consultation process with its staff.

One of New Zealand’s oldest department stores will implement a new format starting next year, which will see its operations downsized to the ground floor of the Queen Street location and the online store. Its Newmarket location will close, most likely at the end of next month.

The company expects to keep about 100 jobs to align with the new business size, with approximately 100 redundancies over the next six months.

According to chairman Tony Caughey, the Queen Street store will remain in its current format until the end of January to ensure Christmas traditions continue as planned.

After that, the location will close briefly for minor works before reopening in the new format in February. The online store will also be refreshed to align with the new offering.

Smith & Caughey’s announced the potential closure of its retail operations in late May, citing a steep sales decline over recent years. The company also launched a consultation process with its staff to review options for the business’s future.