New Zealand’s retail crisis claims iconic brands in 2025 collapse wave
A string of well-known retailers and businesses in New Zealand have shut down or faced financial collapse over the past year. The closures come as rising costs and weak consumer spending put pressure on long-standing companies. Among the most recent casualties is GrabOne, a popular discount voucher service that entered liquidation in October 2025.
The troubles began earlier in the year. In April 2025, The Body Shop collapsed into liquidation, forcing all its New Zealand stores to close and leaving 70 employees without jobs. The cosmetics retailer had struggled with declining sales and shifting consumer habits.
By July, another iconic name disappeared. Smith & Caughey, a Queen Street institution for nearly 150 years, shut its doors for good on 31 July 2025. The retailer blamed fierce competition and shrinking consumer confidence for its downfall. August brought more bad news. Kitchen Things, a supplier of high-end kitchen brands like Smeg and Miele, went into receivership. The company, founded in 1986, pointed to weak demand and intense market competition. Around the same time, Wellington’s Fortune Favours brewery announced it would close its bar by the end of the month, citing the cost of living crisis as the final blow. The retail sector took another hit in September when Smiths City, a chain founded in 1918, entered voluntary administration. The company had faced mounting financial strain for months. Then, in October, GrabOne—the discount platform launched in 2010—collapsed, owing creditors more than $16.5 million. The service had been sold in 2021 to Global Marketplace New Zealand for $17.5 million after its previous owner, NZME, offloaded it. The year ended with further setbacks. NZSale, an Australian-owned discount retailer, stopped taking New Zealand orders at the end of November 2025. Its sister company, OzSale, is also set to close in early 2026.
The wave of closures highlights the growing challenges for businesses in New Zealand. From historic retailers to digital discount platforms, companies across different sectors have struggled to stay afloat. The losses include hundreds of jobs and the disappearance of brands that once shaped the country’s shopping landscape.
