Smith and Caughey’s has announced it will close its Queen Street flagship store in Auckland by the end of July, and its online store next week. 

This comes after a consultation process about the variability of continuing business operations after the department store had downsized to a boutique single-floor format in February. 

The decision was influenced by a range of external factors, including competition from other main street retailers and new shopping malls, economic uncertainty, reduced consumer spending, and the trend towards staff working from home following the Covid-19 pandemic, which has impacted footfall in the city centre. 

Significant disruptions from ongoing roadworks, safety issues leading to a decline in foot traffic and increased downtown parking costs were also cited as reasons for its decreased profitability.

The closure of its retail and online stores will result in 98 redundancies. 

“Our intention has always been to address the business challenges so that Smith & Caughey’s can continue,” said Matt Harray, acting CEO. 

“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,” said Harray.

The Queen Street store will host a final ‘End of an Era’ sale beginning on May 28, with the online store to close on May 30.