Mathers said uploading pictures of so-called ugly people was cyber-bullying. Others weren't sure if the post was a joke or not.
Publicist Murray Bevan said the campaign was created by a local ad agency for free.
An email obtained by the Herald on Sunday had Bevan seeking submissions of "ugly" people by Friday, in time for a planned photoshoot on December 7.
Bevan said the online campaign survived less than an hour: "I'm sure it was supposed to be in jest."
University of Otago marketing expert Andrea Insch said the campaign was confusing.
"Perhaps they were testing the water to see how far they could push public opinion about what is acceptable in the online marketing environment, especially the Facebook community," she said.
The Department Store was established by Walker, Stephen Marr and Dan Gosling in 2009.