Eve of closure after ‘whirlwind’

H&J Smith chief executive John Green is overseeing the closure of the Dunedin department store in...
H&J Smith chief executive John Green is overseeing the closure of the Dunedin department store in the Meridian Mall. PHOTO: GERARD O’BRIEN
A business suit was never going to do for H&J Smith chief executive John Green yesterday.

Dressed in a T-shirt, Mr Green was among clearance sale stock and half-empty shop fittings for the task of overseeing the closure of the company’s Dunedin department store tomorrow.

"The whole experience from March on to now has been a bit of a whirlwind," he said.

In the past nine months, Mr Green had to manage the business going into lockdown, during lockdown, keep staff connected, and then work with the board to make difficult decisions.

H&J Smith announced in June the closure of the Dunedin store in the Meridian Mall, citing significant effects caused by the Covid-19 pandemic and rising costs.

"Once you make a decision on anything, you have responsibility to communicate it as quickly and effectively as possible," he said.

Up to 90 full-time and part-time staff are affected by the decision.

Mr Green was pleased staff had been given extended notice, but that had also created challenges.

"Our focus has been on trying to keep the team together and keeping everyone positive," he said.

"They have done a remarkable job as a group."

The staff had made the process easier because of the way they had stuck to the task, he said.

Some had left for other opportunities, but most would be there until tomorrow.

A team would work into February to help pack the store.

H&J Smith’s retail division includes outlets in Invercargill, Queenstown and Gore, and incorporates Outdoor and Paper Plus.

The company closed its Balclutha and Te Anau department stores last year.

The Dunedin closure would bring mixed emotions, Mr Green said.

"When we acquired the business it was done knowing that there was an element of risk but there was a natural fit for our business.

"We will take a view that we were able to bring something new but the world keeps changing."

Changing lifestyle had meant that there was a lot of consumer spending leakage, demonstrated aptly after the borders closed, he said.

"There has been substantial uplift in retail, which goes to show much money is leaked or expended on travel and lifestyle options."

One of the biggest challenges for the independent retailer was procuring product, more so than delivering and selling to customers, he said.

H&J Smith had products in Dunedin it could not sell in Invercargill and vice-versa.

Managing that level of customising cost brought expensive overheads.

The department store chain was regrouping.

"Obviously we are as disappointed as anyone else that the store is closing," Mr Green said.

"A lot of the factors are out of our control. But making the hard decision that we have means the company remains incredibly strong."

A spokesman on behalf of Oyster Property Group said there was no news to share about who might replace H&J Smith in the Meridian.

bruce.quirey@odt.co.nz

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