The Smiths City store on Colombo Street in Christchurch is being demolished 108 years after the business was established. 

The site, where founder Henry Cooper Smith began operating in 1918, is being cleared to make way for a new residential development.

Before expanding into the national appliances and furniture segments, Smiths City originally began as a market for livestock and grain. 

At its peak, Smiths City operated 35 stores nationwide; however, at the time of its closure, it had just nine stores and about 130 employees.

The company subsequently experienced a significant sales decline of 40 to 45 per cent over two years.

Last year, the company entered liquidation following its voluntary administration, with more than $25 million in claims.