H&J Smith building 'requires significant remediations'
"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.”
The H&J Smith department store building in Invercargill “requires significant remediations”.
H&J Smith Group has revealed its planning to close its department store businesses, including its Invercargill store which has operated on the same site for 100 years.
The key reason for the shock closure has been put down to a decline globally in the department store model.
However, at the same time its existing Invercargill building is need of work 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, an H&J Smith Group statement says.
While the company has 23 years to complete the remediation of the space, the extensive remediation required does not sort the many issues affecting all independent retailers, the statement says.
“It would also be irresponsible to make those extensive investments if the future of the Department Store industry is in decline.
“By making this proactive decision now, we are making it possible for the Invercargill site to have a new future within the revitalisation of the precinct.”
H&J Smith managing director Jason Smith said the decision to propose to call time on the Department Stores has not been taken lightly but he believes the building and site can remain a key asset for the community.
“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,” Smith said.
“While seismic remediation of the site is needed, nothing beyond that has been decided. We believe the community should have the opportunity to weigh in on this issue and help determine the future of the site.”
So just how much would the remediation work cost?
“Because of the size of the building, the investment required to remediate the site will be significant. However, any investment assessment will be influenced and determined by how the site will be used in the future through the development of a comprehensive business case.”
While the current location is seismically challenged, moving the H&J Smith department store to a new location was not an option, according to the H&J Smith Group.
“[It] does not change the increasing challenges of running an independent department store. Shopping patterns and access to an ongoing and sustainable supply chain for customers is changing, making the current business model out of date.”