Retail NZ devastated by Smith & Caughey’s closure, highlighting vulnerability of all businesses to economic challenges

Auckland’s iconic department store, Smith & Caughey’s, is facing closure in early 2025 after nearly 144 years in business. The news has sent shockwaves through the city, with Retail NZ calling it a devastating blow to the retail market.

The upmarket department store, known for its prestigious brands and famous Christmas window displays, has been struggling with a 40% drop in revenue over the past five years. Chairman Tony Caughey cited various factors such as the economic downturn, the rise of shopping malls, and safety concerns in the Auckland CBD as reasons for the decline.

Retail NZ chief executive Carolyn Young expressed sadness at the potential loss of the iconic store, highlighting its unique offerings and cultural significance in the city. She emphasized that no business is immune to the current economic challenges facing the retail sector.

The closure of Smith & Caughey’s would not only impact the staff and loyal customers but also leave a void in the Auckland community. Young questioned what would fill the space on Queen Street once occupied by the beloved department store, noting the challenges that any new business would face in the current environment.

As Auckland grapples with the impending closure of one of its oldest and most cherished retail institutions, the city is left to ponder the future of its retail landscape and the impact of economic challenges on even the most established businesses.