Smith & Caughey’s reveal future options after staff consultation

Tuesday, 30 July 2024

Smith and Caughey's Executive Director Tony Caughey discusses the recent news of the closure of the Auckland department store.

Auckland retailer Smith & Caughey’s have announced the outcome of their staff consultation on whether to close their retail operations.

They have come up with two options, one of which includes a downsized business remaining on Queen Street.

The retailer is continuing to consult with staff on the possibility of remaining open and will have a final decision by the end of next week.

Auckland department store Smith & Caughey’s have revealed the outcome of their staff consultation after previously saying they intended to close their retail operations.

The retailer announced in May it was considering a closure in 2025, with Chairperson Tony Caughey blaming the changing retail landscape among other things on their financial problems.

After considering the feedback of staff, the store says they have come up with two options for the business moving forward.

The first would see them continue with the initial proposal to wind up all retail activities in early 2025.

A second option would see them downsize their operations, a move which would involve the closure of the Newmarket store and a reduced footprint for the Queen Street store.

Smith & Caughey’s chairperson Tony Caughey.

With this option, the 144-year-old Queen Street store would focus on a collection of popular categories and their online offering.

This would also see staffing levels adjusted to align with their downsized business.

Smith & Caughey’s has been on Auckland’s Queen Street for 144 years.

Currently there are 240 staff affected by any proposal.

Smith & Caughey’s said they are continuing to consult with staff on the second option and aim to have a final outcome by the end of next week.

Caughey had said the store has experienced a 40% decline in revenue in what he described as being due to factors outside their control.

“As a result, the company is trading at a significant loss which is unsustainable. Sadly, we do not believe sales can be restored to levels necessary to continue to operate.”

He also said the aftermath of the Covid pandemic has led to a reduction in the number of office workers in the central city, while ongoing roadworks and development in the area have been disruptive to shoppers.

Caughey acknowledged they had spent two years “turning over every rock” to find ways to get the company to where it needed to be.