The Queen Street store will remain open by downsizing its operations to one floor in the central city. Photo: Supplied / Smith and Caughey's
Auckland department store Smith and Caughey's will no longer close at the start of next year and will continue to operate on the city's Queen Street.
On Tuesday, the company announced the 144-year-old retail company was considering to continue operating but on a smaller scale, by downsizing to one level instead of two.
It means about 100 jobs will be saved, while another 100 still face redundancy.
The Newmarket store will also close earlier than expected - at the end of September.
Chairperson Tony Caughey said a path forward had been found, albeit on a "scaled back footprint".
"Our Queen St store will remain largely in its current format until the end of January 2025, allowing for the annual family Christmas traditions to continue as planned, including the exceptional ground floor Christmas windows and the Enchanted Forest on the sixth floor."
At the end of January, the store would briefly close for minor works, Caughey said, before reopening in February.
The online store would also be refurbished to align with the new offering, he said.
In May, the store announced it would close in early 2025 due to a 40 percent decline in revenue from the physical stores.
"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 at the time.
There was a "perfect storm" of factors, including increasing competition from new malls, more luxury brand stores, and roadworks in the CBD, which contributed to the decision, he said.
"In addition, the aftermath of the Covid pandemic has led to a reduction in the number of office workers in the central city on any given day, followed by the huge drop in consumer confidence and the mounting impact of the cost-of-living crises.
"While long term there will be a positive impact from the City Rail Link with Te Waihorotiu Station in mid-town, the expected upswing in foot-traffic and consumers into the city is still several years off."
