Auckland department store Smith & Caughey's has been saved from shuttering its doors entirely – opting to remain open in a "new, reduced format" while focusing on the outlet's popular items and online store.
On May 29, the store initiated a staff consultation proposal regarding the potential closure of all retail operations in early 2025. This included prominent department stores in Queen St, Newmarket, and online.
The proposal seemingly marked the end of one of New Zealand’s oldest department stores, which has been open for 144 years, when it was presented to more than 200 staff.
Today, the company said in a statement it had decided to keep its Queen Street location open with a "new reduced format beyond January 2025".
"This will see operations downsized and refined to the ground floor of the Queen Street store and the online store only.
It's been retail royalty, an icon and stalwart of Central Auckland, selling high-end fashion and homewares since 1880. (Source: 1News)
Smith & Caughey's said its Newmarket store will still close, most likely at the end of September 2024.
"As a result, around 100 jobs will be retained to align with the new business size, with approximately 100 redundancies over the next six months," it said.
Smith & Caughey's chairman Tony Caughey acknowledged staff amid the "challenging time they’ve been through over the last few weeks".
"They have been openly engaged throughout the consultation process which we’ve operated in good faith. Pleasingly for our team, suppliers and customers we’ve found a path forward to allow us to continue operating, albeit on a scaled back footprint," he said.
The Queen Street store's annual family Christmas traditions would go ahead this year.
"At the end of January 2025, the Queen Street operations will close briefly for minor works before reopening in the new format in February 2025. Our online retail store will be refreshed to align with the new offering," Caughey said.
SHARE ME