It's the end of an era as Auckland's oldest department store calls time on its magical visits from Santa and his elves.

Every Christmas, the man in red welcomes young Kiwis into his festive abode at the store.

"I like the climate – it's much warmer here than the North Pole. But seeing the children, that gives me the real joy," Santa told 1News.

For decades, Kevin Broadfoot has been responsible for giving Santa Claus the perfect spot to park his sleigh at Smith & Caughey's.

"It is all about the kids and that's what brings me the biggest reward for what I'm doing," he said. "The joy on their faces, the laughter."

But from next year, the store will be running a scaled down operation, with everything from its upper floors brought down to a smaller space on the ground floor.

The downsizing means there will be little space left for Mr Claus on Queen St.

For Broadfoot, the end of Father Christmas' visits is bittersweet.

"It's just something that I've lived and breathed for so long and just think that it's just not going to be coming back as we know it.

"It really makes me quite emotional."

The window into the magic within is also at risk of being shuttered.

One Christmas shopper called the prospect "heartbreaking actually seeing that, thinking that our family tradition will end".

This year's display takes kids on a forest adventure with two pōhutakawa babies.

"That's a Kiwi Christmas. It's warm – it's not the same as in the Northern Hemisphere," a woman admiring the enchanting scene said.

"It means something to everybody and that's what Christmas is about," a man added.

Despite the uncertainty around what next Christmas will bring, Santa was quick to reassure children he wouldn't be skipping the city.

"Children, don't worry. I'll be back in Auckland."