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After 145 years – including the past four months operating as a smaller-scale retailer – Auckland’s famous department store Smith & Caughey’s will shut for the final time.

Auckland’s flagship department store Smith & Caughey’s will close for good within 10 weeks, with the loss of almost 100 jobs.

A rescue attempt to save the famous retailer – which saw it close its Newmarket store last year and reduce the floor space of its “Grande Dame” Queen St building since early 2025 – has proven unviable.

After 145 years, Smith & Caughey’s – famous for its high-end goods and Christmas window displays – will close its doors for the final time by July 31, with the loss of 98 jobs, the company announced today.

Smith & Caughey's, Queen St.

Smith & Caughey’s acting chief executive Matt Harray said 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,” said Harray.

“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.

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“While we all hoped that the changes we made to the business in the latter part of 2024, including reducing and curating the Queen St offering and closing the Newmarket store, would allow for an improvement in the financial position of the company, unfortunately this has not been the case.

“This is a heartbreaking decision, and our attention right now is on our staff.”

Smith & Caughey’s has been trading for 145 years. Photo / Michael Craig

Harray told the Herald that while the new-look, ground-level Queen St store had started well in February, sales dropped in the following weeks.

“Unfortunately, the foot traffic on Queen St is significantly lower than it was this time last year. We find that when we’ve got a promotion, we can definitely get people in, but outside of promotional times, that’s when we’re struggling and obviously we can’t be on discount all the time.”

Harray said there were several factors behind the fall in foot traffic -a major reason was the economy.

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

“I think the perceived level of safety in the city centre is also putting people off. I don’t think people realise that the city centre is actually a better place to be than it was 12 months ago.”

He said he had regular meetings with authorities including Auckland Transport.

Their response? “Very little.”

Smith & Caughey’s first announced a proposal to potentially close in May 2024, citing factors that created a “perfect storm”.

As well as competing with new shopping malls and the lagging economy, many city workers are continuing to work from home post-Covid.

Shoppers have also faced increased parking costs, ongoing road works and the slow progress of the planned City Rail Link (CRL), according to the company.

Santa has been a regular highlight at Smith & Caughey's for more than a century. Photo / Jason Oxenham

Harray believed that with investment, Queen St could become an important high-end main street retail precinct again.

“But it’s going to take a long time ... we’re five or 10 years away.

“You go over to Europe, and even Australia, and you just see how vibrant these main streets are, and then you see ours here ... it’s just not the same.”

Smith & Caughey's acting chief executive Matt Harray.

Harray, 41, started at Smith & Caughey when he was 15 and his mother was a lingerie buyer for the company. Other than two years when he was in London, it’s the only place he has worked.

“Smith & Caughey’s is a New Zealand retail institution, not just Auckland.

“It’s incredibly upsetting to know that a department store like us will no longer be around. A department store has a very important place to play in the retail scene as we’ve seen around the world, but it is very difficult times.

“I’m really sad personally that this is the end of the legacy of Smith and Caughey’s.”

Herald cartoonist Guy Body's perspective last June.

Harray said the Smith & Caughey’s board would now determine the future of the historic Queen St building, and whether it would be sold or developed.

“The board are going to investigate what happens next after we’ve closed.”

The board was also investigating options for the Newmarket building.

Harray said he was “gutted” for his staff.

“They’re so loyal to us, and so many of them have told us that they want to be here to the end to help support us through this transition.”

Smith & Caughey’s will launch a final “end of an era” sale next Wednesday.

The online store will close on Friday next week, followed by Queen St by the end of July at the latest.

Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at ��һ�ǿ����� including Managing Editor, NZ Herald Editor and Herald on Sunday Editor.