Another blow for Auckland’s CBD retail scene: French beauty retailer Sephora to close Queen St store

Sephora opened its Queen St store in 2019 with a bang. Photo / Sylvie Whinray

Five years after opening its flagship store on Auckland’s Queen St, French beauty retailer Sephora is closing its doors next month.

The move comes as Auckland’s central business district continues to feel the fallout from Covid-19 and changing consumer behaviours.

The three-storey store, located at 152 Queen St, opened in July 2019 to much fanfare, including a dance number from the retailer’s Auckland employees, confetti showers and a live DJ.

But today, the retailer announced it would close on August 19.

Sephora has two other stores in Auckland, at Newmarket and Sylvia Park.

Sephora Australia and New Zealand general manager Mark O’Keefe said the plan was to relocate the retail team to its Newmarket or Sylvia Park stores.

“Brick-and-mortar stores are indispensable to Sephora’s retail strategy.

“They remain the beauty playground where our customers feel welcomed and are empowered to explore, discover, and delight in the latest beauty trends and products.

“Equally, we must go where our customers are and that means refocusing our resources on our e-commerce business and store locations outside the CBD.”

O’Keefe said Sephora remained committed to New Zealand, with new store locations to be announced.

“We look forward to diversifying our footprint in the coming years.”

The Herald reported in 2019 that Sephora spent more than $5 million for the interior fit-out of the Queen St store.

Sephora, founded in 1969, is part of the LVMH Moët Hennessy Louis Vuitton family, the French multinational holding company and conglomerate that specialises in luxury goods.

It’s been a tough year already for retailers in Auckland’s CBD.

In May, Smith & Caughey’s announced it would close its department store in early 2025 after 144 years in business.

Chairman Tony Caughey cited the economic downturn and a big drop in consumer confidence; the rise of shopping malls; upmarket brands building their own retail stores; Auckland CBD traffic, crime and safety issues; and a drop in pedestrians, with many people still working from home as reasons for closing the department store.

Recent data from credit bureau Centrix showed company insolvencies and liquidations continued to climb in May.

Insolvencies jumped to 269 in May - up from 161 in the same month last year. There were 233 company liquidations - up 22% year on year and the highest May total for a decade.

Over the past 12 months, retail liquidations increased by 44% compared to the previous year, with food retailers experiencing the highest volume of liquidations.

“When consumers are facing difficult circumstances they very quickly stop discretionary spending,” Centrix managing director Keith McLaughlin said.

“That puts a lot of pressure on the business sector.”

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.