Smith and Caughey’s, a historic Auckland department store, has been hit by a cyberattack on the same day it proposed to close in early 2025, ending a 144-year legacy. This attack has severely disrupted their internal computer systems, presenting unprecedented challenges. Chairman Tony Caughey described the event as a significant cybersecurity incident, explaining that their server and retail operations systems were crypto-locked. In response, the company has activated a response plan and enlisted a team of experts to address and resolve the issue.
The cyberattack has hampered the company’s ability to communicate effectively with staff, customers, suppliers, and other critical stakeholders, leading to delays and disruptions in communication. Despite this, their website remains functional and continues to serve customers. The proposed closure of their Queen St and Newmarket stores results from multiple factors beyond the company’s control.
These factors include an economic downturn, a significant drop in consumer confidence, the rise of shopping malls, increased competition from upmarket brands with their own retail stores, and safety and traffic issues in Auckland’s CBD. Additionally, many people continue to work from home, contributing to a decrease in pedestrian traffic.
Over the past five years, Smith and Caughey’s has experienced a 40% decline in revenue, rendering the business unsustainable. The company has been operating at a significant loss, with no viable prospects for restoring sales to necessary levels. The decision to propose closure marks the end of an era for the iconic store, which has been a cornerstone of Auckland’s retail landscape since 1880. The store is renowned for its upmarket brands, excellent customer service, and globally acclaimed Christmas window displays. This closure signifies a significant loss for the community, and many Aucklanders mourn the impending end of this historic institution.
