H&J Smith in Invercargill - the biggest retail presence in Southland. Photo / Supplied
H&J Smith in Invercargill - the biggest retail presence in Southland. Photo / Supplied
The worst fears for one of New Zealand’s longest-established retailers, H & J Smith, have been realised in a move one expert calls “deeply saddening”.
The Invercargill-headquartered business tonight confirmed it will close its southern department stores in Queenstown, Gore and Invercargill with the loss of 220 jobs by November.
Chris Wilkinson, of First Retail Group, said this would be “deeply saddening but also cathartic as staff and the community have pondered the future and likely come to similar conclusions”.
“Staff will have had some time to reflect on how the market has changed and the challenges H&J’s would have faced in being able to meet those in the face of changing consumer trends and economic headwinds.”
Last month, Jason Smith, H & J Smith Group managing director and a family member, said a consultation period was being entered into with the likely prospect of closure.
Tonight, closure was confirmed, following the four-week consultation process announced on May 17.
“The H & J Smith Group announces they are calling time on its long-running department store business and now confirms the last day of trading for their Invercargill and Remarkables Park stores will be November 18,” tonight’s statement said.
Jason Smith said the business appreciated everyone who engaged during the consultation process.
The Invercargill flagship department store is actually 12 buildings joined together. Photo / Supplied
“It was important to us to take a considered approach and carefully evaluate the many submissions, questions, and suggestions from our staff and customers. While we received good feedback, most of it centred 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.”
Mitre 10 Mega stores in Invercargill and Queenstown are unaffected, as is Laser Electrical.
There was some good news today.
Smith said the business had identified some areas where there could be an opportunity to continue independently from the H&J Smith brand.
Discussions were underway with several interested parties and they hoped to release details in coming weeks.
School uniforms and specialist lingerie fitting services were two areas of the business H & J Smith had focused on to ensure continuity of service for customers.
John Green, H&J Smith chief executive, said: “We know these services are vital to our customers and community. 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.”
The flagship store in Invercargill needs significant remediations to ensure it meets 100 per cent of new building standard but the business said it had no new information on the future of the buildings there or the site.
Smith said: “Our priority has been our people and determining the future of the business. 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.”
In the coming weeks and months, more announcements will be made.
Stores in Dunedin, Mosgiel, Balclutha and Te Anau had already shut because of the pandemic and supplier constraints and the department store model was in decline here and around the world.
Ken Young, First Union Southland organiser, said last month he was extremely saddened to see H&J Smith as a New Zealand-owned company employing hundreds of locals having to close its doors because of increasing pressure
Wilkinson said staff would now have had some time to reflect on how the market has changed and the challenges the business would have faced in being able to meet those in the face of changing consumer trends and a tougher economy.
New opportunities would emerge and suppliers would look to establish their own stores or sell more goods to others, meaning some employees would be taken on, or see new opportunities.
People would remember H&J Smith fondly, he said.
Last month, Wilkinson expressed great sadness about the closures and said the business was one of New Zealand’s greatest retailers.
“The Smiths are such humble people. They’re some of the most experienced retailers in New Zealand, deeply entrenched in these three communities and give so much back,” he said then.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
