H&J Smith confirms Dunedin store closure

H&J Smith has confirmed it will close its Dunedin store. Photo: ODT Files

The company had signalled the closure this week and confirmed it in a press statement today.

The Meridian Mall store set to shut its doors on January 30.

The Armoury Store, which is in the Wall St precinct will also shut then.

The decision will affect 85 workers at the Dunedin stores.

“While I appreciate this will be very difficult for our Dunedin-based staff, I am pleased to be able to provide certainty so they can now plan for their futures,” H&J Smith managing director Jason Smith said.

“We deeply regret the impact the Dunedin department store closure will have on our employees and their families, as well as the community.”

The distance of the Dunedin store from H&J Smith’s other operations meant redeployment was unrealistic for most of the 85 workers, Mr Smith said.

Redeployment for staff happy to relocate would be considered.

“We are working closely with our staff to ensure we are able to provide our high level of service to our customers until we close in January next year.”

The company’s Te Anau and Balclutha stores will close at the end of next month.

The Gore store will downsize in August and the Outdoor World in Queenstown will shut then too.

‘‘The company has been significantly impacted by the Covid-19 pandemic, and is also grappling with issues like increasing wage and compliance costs, store size and scale and an ageing store network in need of capital expenditure,’’ the company said.

It also said by reducing its network and ‘‘consolidating its operations’’ to its Invercargill store it would secure the long term future of its retail division.

‘‘We’ve been working in the background with the Dunedin mall owners and managers to finalise terms. Late yesterday we received the necessary legal documentation to allow us to firm up exit dates,” Mr Smith said.

H&J Smith had had several expressions of interest for the Mosgiel store and that is being looked at.

The other businesses operated by the H&J Smith Group, Mitre 10 MEGA in Invercargill and Queenstown as well as Laser Electrical in Invercargill were not affected by the restructure.

jacob.mcsweeny@odt.co.nz