The large-format appliance and furniture retailer first moved into Hastings in early 2016.
The store was closed to the public on January 15, with the company expected to be out of the building by the end of the month, he said.
Allison said people could still shop online or visit the next closest stores, in Palmerston North and Taupo.
Owners of the building were tight lipped about what would replace Smiths City but Danny Blair, of Colliers Hawke's Bay, confirmed they were "in discussion with a large retail" outfit.
He said there had been a huge number of inquiries about commercial spaces in the last six months, with strong demand for retail and office spaces in both Hastings and Napier.
"When Covid-19 hit, the market died off, but it's bounced back."
The market was "very upbeat" and the industrial sector was holding up "incredibly well", he said.
"It feels as strong if not stronger than last year.
"We are expecting this year to be one of the busiest ones."