Iconic Invercargill department store H&J Smith is facing closure after serving generations of Southlanders for more than a century.

Under the proposal the company’s Queenstown and Gore stores will also be wound up, while Mitre 10 MEGA in both Invercargill and Queenstown, and Laser Electrical in Invercargill will remain unaffected.

Around 220 staff are employed across the department stores division.

While continuing to trade positively, systemic changes within the retail sector, including shopping preferences and supply chain issues, have made it difficult for the independent retailer.

H&J Smith Group Managing Director Jason Smith said the decision to propose calling time had not been taken lightly.

“Over [our] long tenure, we have witnessed and adapted to many changes within an ever-evolving marketplace, and we have always strived to offer products and services to reflect the needs and desires of our customers.”

“The marketplace is evolving once again and it’s moving away from the traditional Department Store model,” Smith said.

“So, with an eye to the future, we believe it is time for H&J Smith to evolve once again.”

“We have been honoured to have spent more than a century as an integral part of the Invercargill, and Southland, community,” Smith said.

H&J Smith Chief Executive Officer John Green said it was important for H&J Smith to be proactive, “so we can take care of our people and help them through this transition rather than have the decision made for us in the future.”

H&J Smith also faces a significant investment to bring its historic 12,000sqm Invercargill store, which is made up of 12 different buildings – all with different seismic ratings, up to earthquake standards.

“Now we feel it is time for the community to create a new vision for what this building and site can be moving forward, potentially as part of the current rejuvenation of Invercargill’s city centre,” Smith said.