New Zealand department store H&J Smith will close its Invercargill and Remarkables Park stores on November 18, after 123 years in business.
The brand was established in 1900 as a drapery store in Invercargill, New Zealand's southernmost city, and has since scaled into a retail group. Its other subsidiaries include two Mitre 10 MEGA stores, a Laser Electrical store, and an Outdoor and Armoury Fashion Boutique store in Invercargill, which are all unaffected by the news.
The 12,000 sqm H&J Smith flagship in Invercargill currently employs 220 people, with the department store selling Australian brands such as R.M Williams, All About Eve and Nature Baby.
H&J Smith group MD Jason Smith said the news came after a four-week consultation process launched on May 17.
“It was important to us to take a considered approach and carefully evaluate the many submissions, questions, and suggestions from our staff and customers,” Smith said. “While we received good feedback, most of it centered on specific factors, such as building remediation or supplier issues, rather than a collective consideration of all factors behind this decision.
“In the end however, it was clear our proposal to call time on the department store business is the right decision for the H&J Smith Group.”
The H&J Smith group reported it will continue to work closely with staff members who will be impacted by the closure of the department store business.
“We know this is difficult news for our staff and community,” H&J CEO John Green said. “Supporting our team through this challenging time remains our top priority.”
Green said the company closed the store on June 27 following the news to give the team “space and time to absorb the news.”
H & J Smith Group claimed it identified some areas of the business where there could be opportunity for them to continue independently from the H & J Smith brand. Discussions are currently underway with several interested parties.
School uniforms and specialist lingerie fitting services are two areas of the business that H & J Smith have focused on to ensure continuity of service for their customers.
“We know these services are vital to our customers and community,” Green said. “Finding a solution for both has been a priority for us, and I am pleased to confirm we will soon make an announcement regarding the future of these services.”
While the HJS flagship store in Invercargill requires significant remediations to the existing building to ensure it meets 100% NBS (new building standard), the company noted there is no information yet to share about the future of the building or site.
“Our priority has been our people and determining the future of the business,” Smith said. “It’s only now that it’s appropriate for us to discuss potential uses for the building and site. We feel very strongly, however, that the community has an opportunity to assist in the creation of new vision for this space.”
The company will be communicating directly with account holders regarding the future use of the H & J Smith card.
“Our team and management have really appreciated the incredible customer support through this difficult process,” Smith continued. “On their behalf, we would like to thank the community for these kind words, stories, and wishes shared with us over the last four weeks.
“It’s been a great privilege to hear what H & J Smith has meant to the Invercargill, and Southland, community for the last 123 years. We have been honoured to have played even a small part in the lives of our wonderful community.”