Dunedin mayor urges H&J Smith to remain open in city

Tuesday, 26 May 2020

Dunedin Mayor Aaron Hawkins said the closure of H&J Smith department store would be the end of significant chapter.

Dunedin mayor Aaron Hawkins is urging H&J Smith to consider help from the Government before closing its department store in the city.

Retailer H&J Smith Group announced on Monday a proposal to close six of its stores, including its H&J Smith department stores in Te Anau, Mosgiel, Balclutha and Dunedin.

Its flagship store in Invercargill and its Queenstown store will remain open, while its Gore store will downsize under the proposal.

The group was also proposing to close its Armoury store in Dunedin and Outdoor World in Queenstown.

The proposal would affect 175 staff across its stores.

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The H&J Smith flagship store in Invercargill is not affected by the proposal.

Hawkins urged the business to reconsider the proposal, and make use of Government support that was available for struggling businesses.

While H&J Smith did not have the same history as it did in Invercargill, there had been a department store on the George St site for almost 100 years and closing would be the end of significant chapter, Hawkins said.

However, it was difficult time for staff and their families, and they had to be the centre of the discussion, he said.

H&J Smith had to delay opening its Dunedin store at Meridian Mall after the move was made to go to alert level 2, due to seismic concerns about the building.

Hawkins hoped they could work with their landlord to get them through the other side of the hardship.

He also urged other struggling retailers to take on the support that Government could offer them.

There was now greater Government support for people who had lost their jobs, and retailers needed to continue to reach out for it, he said.

There was not a lot the council could do to support H&J Smith as it was not in the business of propping up struggling commercial enterprises, he said.

The council's focus was to continue to invest in the city centre in a way that made it attractive for business in the future.

H&J Smith managing director Jason Smith said the group had applied for all Government support that was available to them.

It had applied for the wage subsidy and the wage subsidy extension but it was only one cost to running a business, he said.

The proposal was not a decision made solely on the economic effects of Covid-19, he said.

Smith believed it was not the Government's role to prop up every business in the country.

Smith would be having further discussions with the landlord at Meridian Mall on Wednesday.

H&J Smith Te Anau store manager Shayne Mercer said the news that his store would be closing was not unexpected, but the size of the closure at the other stores was a surprise.

'This will certainly be a big blow for the Te Anau township itself, along with all the other businesses that are going through the same thing.'

Customers had been very supportive to the store with one customer dropping off a bouquet of flowers for him this morning, Mercer said.

A final decision would be made on the proposal in early June.