Iconic Auckland department store Smith & Caughey’s to close for good

Wednesday, 21 May 2025

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

Smith & Caughey’s will close for good after an attempt to save the 145-year-old business failed.

The Auckland department store has been operating in a downsized format since January.

The store will close on July 31.

Iconic Auckland department store Smith & Caughey’s has announced it will close for good within 10 weeks.

Around 100 jobs are set to go at the Queen St store after an attempt to save the 145-year-old business failed.

In August last year, the company announced they would implement a new reduced format beyond January 2025, which they had hoped would allow them to stay open long-term.

Former Smith & Caughey chairperson Tony Caughey.

As a result, operations were downsized and refined to the ground floor of their flagship Queen St store, while they also continued to operate an online store.

This came after weeks of consultation with staff, which saw the closure of their Newmarket store.

However, the attempt to keep the business going has now been deemed “unviable”, with acting chief executive Matt Harray telling the NZ Herald that it was a “heartbreaking decision”.

“We are acutely aware that this has been a difficult and uncertain time for our staff and today’s announcement is a deeply emotional one for all the team, our suppliers and our loyal customers,” Harray said.

The store has been on Queen St form 145 years.

“Our intention has always been to address the business challenges so that Smith & Caughey’s can continue.

“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.”

Harray said that the new-look store had started well, but sales had recently dropped.

The last day of trading will be July 31.

He said a fall in foot traffic and the economy were partly to blame for the closure.

“I also think the sheer amount of roadworks surrounding our store currently is really putting people off,” he said.

In 2024, former chairperson Tony Caughey said the store had 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.”

Caughey said changes to the retail landscape, including the growth of new shopping malls, had contributed to consumers looking away from prestige department stores.

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.

Smith & Caughey’s will close on July 31.