Three-level department store for Auckland: Faradays’ $30 million retail development under way
Wednesday, 10 December 2025
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Construction is under way to renovate and fit out a luxury department store on Queen St in Auckland City centre, after the closure of Smith & Caughey’s.
More than $30 million is being spent on the three-level store for high-end Parnell retailer Faradays, in the heritage-listed Milne & Choyce building at 131 Queen St.
The 3000 sqm store is set to sell an array of local and luxury branded goods across apparel, homeware and beauty, with in-store dining and valet parking. It will also host regular store events and activations.
The store, located close to the strip of international luxury retailers at lower Queen St, will shine a spotlight on emerging local brands, as well as desirable international names, which could include the likes of Celine - not currently available in New Zealand.
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A spiral staircase will be a central feature in the development, with the space being designed by Fearon Hay Architects. There will be three distinct environments - a contemporary fashion space, a beauty in New Zealand and indigenous fashion space and luxury goods on the top floor.
Inspiration has been taken from the original Milne & Choyce department store, which opened 116 years earlier, and will be “represented in modern terms”.
The venture is being led and funded jointly by Faradays co-founder and chief executive Edward von Dadelszen, alongside developer Andrew Krukzeiner and property investor Mark Francis.
Parnell-based Faradays stocks high-end labels, however, in order to perform well on Queen St, the new store had been designed to cater to a broader market, von Dadelszen said.
He told The Post the department store represented the next evolution of Faradays, something he and his business partner and wife, Constance von Dadelszen, Faradays’ creative director, had been working on for almost two years.
The department store would focus on customer service.
“You won’t be standing there looking for someone to help you out; you'll be engaged with immediately. The digital to retail language and energy will be almost seamless. We'll be very focused on an amazing digital and in-store experiences, we’re investigating the way those two things speak to each other, and dedicated to hospitality because we understand retail is an experience; it’s like an event. The product you leave with is only part of the product that you're kind of purchasing. I feel that's been lost in the past,” Von Dadelszen said.
“Some of the department stores overseas have still got that magic, and those department stores are still doing just fine.
“We're feeling like there's some very strong tailwinds around the CBD.”
Von Dadelszen is tight‑lipped on which brands will be sold in store, saying details will be revealed next year ahead of the early July opening.
The store will heavily promote New Zealand designers in activation spaces, and will play a part in NZ Fashion Week, he said.
“We feel a responsibility to present New Zealand designers given our location, the scale of the project, and our positioning on Queen St. We get to be custodians of some New Zealand brands, and we get to elevate them alongside some of the biggest brands in fashion.”
Cruise ship passengers, international and regional tourists are expected to be important customers and the opening of the New Zealand International Convention Centre is also expected to give the site a boost.
Luxury retailing has rebounded strongly since the pandemic, remaining resilient despite the cost‑of‑living crisis and economic downturn affecting most households
While many view department stores as a sunset industry, von Dadelszen believes the format can thrive if executed well.
Former Queen St department store Smith & Caughey’s closed in June, despite initial hopes to continue in a smaller format, downsizing from three levels to one. The retailer operated for 145 years but ultimately said trading conditions and changing shoppers habits made it no longer viable.
Von Dadelszen said he had faith Faradays would be a success as it was located much lower down Queen St, closer to the waterfront and next to luxury retailers Prada, Dior, Gucci and Louis Vuitton, where there was more regular foot traffic. It will open metres away from the upcoming Cartier store.
With Smith & Caughey’s and DFS that previously operated in Customs House both closed, there was a significant opportunity for a department store in Auckland city, von Dadelszen said.
“Smith & Caughey’s was something like 13,000 square metres of retail space, Faradays is 3000 so we're right-sized for the economy and the right size for the city and the population.
He said DFS’s departure meant two stores had closed, and that was when he and the board, along with investors, saw it as a compelling opportunity.
Von Dadelszen said he believed in the future of Queen St - and “believed it was coming back” to its former glory days.
“If you think about Oxford St in London, you've got Selfridges, or Bergdorfs in New York, or even David Jones on Elizabeth St in Sydney. Global cities have department stores, and Auckland has the opportunity. I really feel like the reinvestment in the CBD is becoming more and more vibrant. I feel like there's a recovery taking place day-on-day so hopefully our timing is okay.”
He anticipates Faradays will achieve yearly turnover greater than the $30 million invested in building the store.
Luxury retail in the CBD
The New Zealand economy has been doing it pretty tough, but luxury retail tends to suffer first - and recover the first. Brands on Queen St are started seeing their revenue increasing again.
Auckland mayor Wayne Brown has welcomed the news of a new department store for central Auckland, and business association Heart of the City said it would “advance the prestigious retail offering” along Queen St.
Chief executive Viv Becksaid lower Queen St had long been recognised as a premier destination for luxury retail, with a strong lineup of flagship boutiques.
She said 2026 was set to be a big year for the city centre. “Tourist numbers are rising, international students are back to pre-Covid levels, the NZICC and CRL will open, and along with other developments opening, the tall Seascape apartment tower is getting closer to completion. The area’s proximity to world-class hotels, arts, dining, and the waterfront, combined with increasing pedestrian traffic, augur well for a thriving luxury retail market,” Beck said.
The arrival of Faradays would further advance the prestigious retail offering along Queen St, she said.
Evolution of department stores
First Retail Group managing director Chris Wilkinson said department stores have had to evolve to adapt to changing consumer preferences.
“Luxury department stores around the globe have seen a major shift over the past decade to where they are now more 'stores within stores' with the operators essentially landlords, rather than the retailers themselves.
“Gone are the days of a full suit department or streetwear section in Harrods, Selfridges, Harvey Nichols or Pertemps. Today, brands like Boss, Paul Smith and others have dedicated stores - with their own staff - on floors where complementary brands are also located. Ironically, you'll also find those stores nearby too - very much like you'll see some of the brands in David Jones elsewhere in Newmarket.
“In smaller markets the suppliers pay, but some departments may be run by the department store. Brands want to be represented in markets and want their products and experience to be delivered in the best way possible. That's why they want to be part of contemporary, curated environments like what Faradays is proposing to deliver,” Wilkinson said.
Queen St had seen a number of new brands open - often under the auspices of respected local retailers - such as Partridge, and others such as Singapore's The Hour Glass as they looked to tap into the growing market for luxury goods, he said.
“Faradays has established a strong following and it is a logical step, moving into Queen St where they are amongst the luxury cluster - a trend that is happening in other major cities around the globe. Creating a confident destination and seamless experience is an important part of wooing the luxury customer for whom product is only part of the equation.
“The store will have scale and be an immersive experience which very much goes with the territory. A beautiful, sensory environment creates a place that people want to be a part of - helping to drive attraction and performance.”
Wilkinson said Faradays would not look like a department store New Zealanders have known from the past.
The traditional department store format, whereby a retailer buys product from many suppliers and marks that up, no longer works as suppliers are increasingly going direct to consumers through their own stores or online, and the margins in that model are no longer sufficient to cover the high costs of doing business and leases, he said.