After 145 years in business, Auckland department store Smith & Caughey's has announced it will close on 31 July.

In a statement posted to social media, Smith & Caughey's said 98 staff would be made redundant when the Queen Street retail and online stores close.

Smith & Caughey's closed its Newmarket store last year and reduced its CBD store to a single-floor format due to financial difficulties.

The company cited increased competition from new shopping malls, continued economic uncertainty and low consumer confidence and spending power has contributed to their closure.

Smith & Caughey's also said many city office workers were continuing to work from home, post-Covid.

They said the city centre has also faced significant disruption and change in the form of ongoing roadworks and the slow progress of CRL causing traffic congestion.

Smith & Caughey's were loved for their Christmas window displays. Photo: Supplied / Smith and Caughey's

The company also said a large decline in foot traffic on Queen Street and an increase in parking costs had caused an impact, forcing the "heartbreaking" closure of the entire business.

"We are acutely aware that this has been a difficult and uncertain time for our staff and today's announcement is a deeply emotional one for all the team, our suppliers and our loyal customers," acting chief executive Matt Harray said.

"Our intention has always been to address the business challenges so that Smith & Caughey's can continue. Every attempt has been made to achieve this and every feasible option investigated, no stone left unturned.

"However, it's sadly clear it is no longer viable for us to keep the doors open."

The online store will close on 30 May.

This story was originally published by RNZ