The family behind one of Auckland’s most iconic retailers is embracing rapid change while preserving the tradition that has made the department store such a city institution.
The Caugheys, who run two Smith & Caughey’s department stores in Auckland’s CBD and Newmarket, are caught in challenging times with the advance of e-commerce, the arrival of Australian department store David Jones, and the appeal to consumers of increasingly specialised retailers.
However, Edward Caughey, who is the fifth generation of the family to take a senior role at the company, recently said that it was embracing the new world of retail.
It has a well-resourced and effective online operation with more than 100,000 people on its database, and is setting out to forge ties with young social media influencers.
“We are a family company and we want to respect the heritage and culture we’ve built,” he told Kia Ora Magazine. “But also we recognise that, when things change, you need to evolve.”
Edward, the son of managing director Andrew, is the retailer’s merchandising manager and also a board member.
Smith & Caughey’s began life in 1880 as a drapery store that evolved into a two-location retail powerhouse.
Founder Marianne Smith Caughey-Preston was a generous philanthropist and left a huge estate, equivalent to $40 million in today’s money, when she died in 1938.
She gifted her own home in Herne Bay to the Salvation Army to use as an orphanage and donated the Quinton and Craigavon parks to the people of Auckland.
According to court documents filed last year, the Caughey Smith-Preston Charitable Trust continues to have a net worth of around $48 million. However, its major asset, a rest home and geriatric hospital in the Auckland suburb of Remuera, closed in 2017 after years of financial losses and its future remains unclear.
The holding company has about 60 shareholders, mainly members of the extended Caughey family. Andrew Caughey is the fourth generation to run the firm, having succeeded his cousin, Sir Harcourt Caughey.
2018: $130 million