The doors will remain open at stores run by one of New Zealand's largest privately owned retailers, despite online reports to the contrary.

A fake newscast video making the rounds on social media, reporting to be from United States based news company Fox News, claims H&J Smith, which has department stores in Invercargill, Dunedin, Queenstown, Gore, Balclutha, Te Anau, and Mosgiel, was closing.

The newscast features interviews with worried Americans, concerned for H&J Smith's staff following the closure of the stores, and photographs of the retailer's stores in Invercargill and Gore.

John Hawkins H&J Smith's Invercargill store. The retailer has become the victim of an online scam reporting its stores are to close.

The scam, which appeared online last week, offered a free sample to customers.

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H&J Smith chief executive John Green said the company was contacted by several customers who had seen the scam on their online news feeds and the company posted a statement on its own social media pages, reassuring customers that its stores were not closing.

"It's just disappointing that people take it upon themselves to create confusion for customers.

Rachael Kelly/Stuff Retailer H&J Smith has become the victim of an online scam reporting its stores are to close.

"It's just a mischief maker and if I catch up with them then we will have words."

The company alerted its store managers of the scam as soon as it became aware of it. They then alerted the company's 400 employees.

While there was still comment about the scam on social media, feedback from customers on the shop floor had been minimal, he said.

Facebook A video scam reporting retailer H&J Smith was closing appeared online late last week.

"There might have been the odd one wanting their free sample or people commenting about the scam, not the fact that we are closing.

"The life expectancy of some of this stuff is quite minimal now because there is so much of it, so the creators don't get the cut through quite the same as they used to. We don't see it as having a major impact."

The company warned customers not to click on links if they suspected they were a scam.

Rachael Kelly/Stuff H&J Smith's Gore store. The retailer has become the victim of an online scam reporting its stores are to close.

H&J Smithopened as a drapery store in Invercargill in 1900.

Air New Zealand also warned customers not to respond to a scam message offering the chance to win free flight tickets after a fake post was placed on social media at the weekend.