The H&J Smith department store in Invercargill. Photo: Supplied / Google
A Southland-Otago department store chain has announced it will shut its doors after more than 120 years in business.
H&J Smith, which began in 1900, said it had made the difficult decision to shut its remaining stores, after a string of closures in 2020.
Group managing director Jason Smith said the market was moving away from the traditional department store model.
He said supply chain problems, and the significant cost needed to maintain its flagship Invercargill store, were also factors in the decision.
Smith said H&J Smith would take care of its staff and help them through the closure.
Wellington's David Jones also closed last year, just six years after replacing Kirkcaldie and Stains.
Auckland University senior marketing lecturer Marilyn Giroux said the closure of department stores was a global trend.
"It comes a lot with the rise of online shopping for the majority, but what we're seeing is around the world, Australia, the United States, Canada or even Europe, a lot more of those big stores are closing," she said.
Giroux said foot traffic was dropping as customers moved to digital platforms and rent and minimum wage increases were also adding to the financial strain for department stores.