Historic H&J Smith department store to close

The H&J Smith Group says the department store model is in decline here and around the world which prompted the shock decision to close.

Invercargill’s historic department store H&J Smith is set to close.

The H&J Smith Group is proposing to close its historic department store business.

It includes its flagship department store which has operated at the same site in the heart of Invercargill for 100 years.

The company says the department store model is in decline here and around the world which prompted the shock decision.

“We have been honoured to have spent more than a century as an integral part of the Invercargill, and Southland, community,” H&J Smith Group managing director Jason Smith said.

The H&J Smith company was established in Invercargill in 1900, initially as a drapery store.

It has proposed to discontinue online sales and Laybys on July 1 and the last day for trading is planned for Saturday, November 18.

Smith explained there have been significant changes in the retail sector in New Zealand and around the world.

Shopping preferences, supply chain issues, supplier access, and procurement, and ongoing reinvestment requirements have all had a significant impact, and will continue to make it more difficult for independent retailers to operate, Smith said.

In 2020, supplier constraints, Covid-19, and restraint on reinvestment led to H&J Smith Group taking a decision to scale down its department store business in Otago and Southland. It included the closure of several stores, including Dunedin, Mosgiel, Balclutha, and Te Anau.

It is now proposing to close its Invercargill, Gore, and Queenstown stores.

The H&J Smith department store is said to still be profitable but, in a statement, the H&J Smith Group says it will decline over time and is not sustainable.

“We believe we have a responsibility and obligation to our staff and community to operate in good faith.

“We would not be doing that if we continued operating with this knowledge or allowed the business to fail. By looking to the future, and not waiting until the sector grows worse, we are able to responsibly manage our exit and help transition our staff.”

H&J Smith Group says the new Invercargill Central development did not play a role in this decision.

Although it adds what the new shopping centre has illustrated is that the H&J Smith store needed refurbishment to be brought up to a modern standard.

This proposal is out for consultation for four weeks. They will not confirm the outcome of the consultation before Friday, June 23.

The H&J Smith Group’s Mitre10 MEGA Invercargill & Mitre10 MEGA Queenstown businesses, as well as Laser Electrical, are unaffected by the proposal and will operate as usual.