$30 Million Luxury Department Store to Transform Queen St, Auckland

Construction is underway for a new luxury department store in Auckland’s central business district, marking a significant investment of over $30 million. The project, led by Faradays, is situated in the heritage-listed Milne & Choyce building at 131 Queen St, following the closure of the long-standing retailer Smith & Caughey’s.

The three-level store will span approximately 3,000 square meters and is expected to offer a curated selection of local and international luxury brands across various categories, including apparel, homeware, and beauty. Additional features will include in-store dining options and valet parking services, alongside regular events and promotions aimed at engaging customers.

Located near a stretch of international luxury retailers, the new department store will prioritize showcasing emerging local brands alongside established names, potentially including luxury labels like Celine, which are currently unavailable in New Zealand. The design, executed by Fearon Hay Architects, will incorporate a prominent spiral staircase and create three distinct environments: a contemporary fashion area, a beauty section focused on New Zealand and indigenous fashion, and a luxury goods space on the upper floor.

The inspiration drawn from the original Milne & Choyce department store, which opened 116 years ago, aims to modernize its legacy while creating a unique shopping experience. Edward von Dadelszen, co-founder and chief executive of Faradays, stated that this venture represents the next evolution for the brand, a project he and his wife, Constance von Dadelszen, who serves as Faradays’ creative director, have been developing for nearly two years.

In an interview, von Dadelszen emphasized the store’s commitment to exceptional customer service. “You won’t be standing there looking for someone to help you out; you’ll be engaged with immediately. The digital and retail experience will be almost seamless,” he noted. He expressed confidence that the department store could thrive in the current retail landscape, citing strong foot traffic in the area and the evolving nature of luxury retail.

The store aims to actively promote New Zealand designers through dedicated activation spaces, aligning with the upcoming NZ Fashion Week. This initiative reflects Faradays’ commitment to elevating local talent, with von Dadelszen stating, “We feel a responsibility to present New Zealand designers given our location, the scale of the project, and our positioning on Queen St.”

Anticipating a diverse clientele, including cruise ship passengers and international tourists, the new department store is poised to benefit from the recent opening of the New Zealand International Convention Centre. Despite economic challenges, luxury retail in Auckland has shown resilience since the pandemic, with growing revenues reported by brands on Queen St.

While many view traditional department stores as facing decline, von Dadelszen believes that a well-executed luxury department store can succeed. The previous tenant on Queen St, Smith & Caughey’s, closed its doors in June after 145 years in operation due to changing market conditions and consumer habits. In contrast, Faradays is strategically positioned closer to the waterfront, near high-end retailers such as Prada, Dior, Gucci, and Louis Vuitton, where foot traffic is likely to be higher.

With the store size at 3,000 square meters, von Dadelszen argues that this scale is appropriate for the current market and the city’s needs. He also pointed out that the closure of DFS and Smith & Caughey’s has opened up a significant opportunity for a new department store on Queen St.

Believing in the future vitality of Queen St, von Dadelszen drew parallels to renowned retail streets in global cities, stating, “If you think about Oxford St in London, you’ve got Selfridges, or Bergdorfs in New York. Auckland has the opportunity to have a prominent department store.” He expressed optimism about the ongoing revitalization of the central business district, highlighting that each day brings new signs of recovery.

Looking ahead, von Dadelszen projects that Faradays will generate annual revenues exceeding the initial $30 million investment in the store’s construction. The Heart of the City business association has welcomed the news, asserting that the new store will enhance the prestigious retail offering along Queen St.

In a statement, chief executive Viv Beck remarked that the lower end of Queen St has long been recognized as a premier luxury retail destination. With rising tourist numbers and the anticipated opening of the Central Rail Link in 2026, she noted that the area is set for significant growth and increased pedestrian traffic.

The evolution of department stores is being shaped by changing consumer preferences, as highlighted by Chris Wilkinson, managing director of First Retail Group. He noted a global trend towards “stores within stores,” where brands operate their own sections within larger retail environments. This shift reflects a desire for curated experiences, which aligns with Faradays’ vision.

As Auckland prepares for the arrival of this new luxury retail destination, the anticipation surrounding Faradays underscores a broader trend of revitalization and innovation in the retail sector. By bridging local and international luxury offerings, the department store aims to create a unique shopping experience that resonates with the evolving needs of consumers.