This week marks the end of an era for two classic Kiwi brands - department store Smith & Caughey’s announced it will shut their doors for the last time at 4pm today, and hosiery manufacturer Columbine that they’re closing their Gisborne factory in August.
These are both sad events. Smith & Caughey’s has been part of Queen St for 145 years, and Columbine has kept me in opaque tights for as long as I can remember, and others for longer before! But the news was hardly shocking.
Manufacturing in New Zealand has become increasingly challenging and costly over decades. Retail has been transformed by online shopping and parallel importing. A disruptive pandemic didn’t help, and continuing economic uncertainty means closures are an unfortunate reality.
It’s incredible tough for staff, and while no one involved is likely interested in silver-linings right now, we should take a moment to celebrate that Smith & Caughey’s employed people for 145 years, and Columbine for 75 years. Both are significant achievements.
But it’s going to be an emotional afternoon on Queen St today. A tough day for staff, shoppers, suppliers, and those who loved making the annual trip up the elevator to see Santa Claus and the incredible Christmas displays. I have a collection of photos in which at least one of my kids is crying while posing next to the bearded stranger. I know, my bad. But the bauble for the tree was always appreciated.
Many of us have memories of this Auckland retail icon. Whether you live in Auckland or have visited over the years, Smith & Caughey’s initially offered service and products you couldn’t get anywhere else. It was a historic company with a female founder ahead of her time, set in a beautiful building. Think of the secrets and stories hidden in those walls.
Smith & Caughey’s explanation for closing was a “perfect storm of adversity”. In addition to economic uncertainty, they referenced increased parking costs, ongoing roadworks and the slow progress of the City Rail Link (CRL) as having an impact on shoppers. While today should be a day of appreciation and fond memories, retailers can’t afford to be quite so nostalgic. There are lessons to be learnt about moving with the times, adapting to competition, less exclusivity and retaining customers.
Also announced this week, Columbine, a family business and the last hosiery manufacturer in New Zealand, will shut its doors and 45 jobs will go.
Once again, reality bites. A written statement from the company said the decision was “driven by a combination of declining sales and increased operational costs, which made it unsustainable to continue manufacturing in Gisborne”.
Interestingly, recently released data compiled by Infometrics looked at the types of jobs which have disappeared over the last 25 years. If you look at jobs in manufacturing - such as a sewing machinist, footwear production machine operator, hide and skin processing machine operator, knitting machine operator, textile dyeing and finishing machine operator and others, employment has fallen from 14,472 to 5608 since 2000.
This isn’t just because companies have closed, but because technology has taken over. It’s a reminder that change and challenge are constant in most sectors.
So surviving as a manufacturer in New Zealand for 75 years is nothing to scoff at. It’s actually very impressive and quite something really.
Both companies should be proud of their legacies.
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