H&J Smith Department Stores to Close After Over a Century in Business
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H&J Smith department stores will no longer be open from November 18, after more than a century in business.
The H&J Smith Group (HJSG) announced its proposal to call time on its long running Department Store business, and staff were told yesterday – including 220 in Invercargill.
The news comes just three years after the company restructured and closed its Dunedin, Mosgiel, Balclutha and Te Anau stores, due to supplier constraints and Covid-19. H&J Smith purchased the Arthur Barnetts flagship store in 2015 and closed it in 2020, along with Te Anau and Balclutha store while downsizing its Gore department store.
“The steps we took in 2020 and early 2021 put us in a good position to recover from the impacts of Covid shutdowns and continuing aftershocks of the pandemic. The recovery has been better than we expected, and we continue to trade positively,” H&J Smith CEO John Green said.
Some of its smaller branch stores such as H&J Smith store in Gore and in Queenstown’s Remarkables Park may close earlier due to loss of capability of capacity.
The company has proposed to discontinue online sales and Laybys on 1 July 2023, with a final closing date in November, but the next four weeks will be a consultation period.
Invercargill Central’s new shopping centre has not played a role in the decision. “However, what the new shopping centre has illustrated is that our current store needs refurbishment to be brought up to a modern standard. However, it’s not advisable to invest in a refurbishment, which will only have to be ripped out during remediation of the building once these requirements are confirmed.”
Managing director Jason Smith said the marketplace is evolving once again and it’s moving away from the traditional Department Store model.
“So, with an eye to the future, we believe it is time for H&J Smith to evolve once again.”
In addition to the changing retail market, the flagship Department Store in Invercargill requires significant remediations to the existing building to ensure it meets 100% NBS. The Invercargill store is made up of 12 different buildings, built at different times, all of which have different seismic ratings which prevent subdividing of the space for other tenants or uses.
“The decision to propose calling time on our Department Stores has not been taken lightly. However, we have always reflected the needs and desires of the community we serve whilst looking to the future. Now we feel it is time for the community to create a new vision for what this building and site can be moving forward, potentially as part of the current rejuvenation of Invercargill’s city centre,” says Smith.
The Mitre10 MEGA Invercargill and Mitre10 MEGA Queenstown and Laser Electrical are unaffected and will operate as usual.
H&J Smith Group started as a Department Store business in 1900. The company has grown and developed to incorporate other businesses within the group, including the two Mitre 10 stores.
The H&J Smith flagship store of over 12,000sqm is one of the city’s major retail anchors.
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