Nichols and Red Barn owner Allan Dippie said the Red Barn store had been sited in Andersons Bay Rd for about 15 years, but the time had come to move out of the premises, because the lease was about to expire and real estate in Andersons Bay Rd was becoming ''pricey''.
It was time to ''rationalise all our overheads''.
No jobs would be lost with the closure of the outlet.
Mr Dippie said he planned to move the Red Barn staff to his other store, Nichols Garden Centre, Florist, Landscaping and Paving Centre, at the corner of Timaru and Teviot Sts, which would be expanded later this year.
Neighbouring land had been bought in Timaru St, to expand the site to about 10,000sq m. It would allow space for a cafe to built at the centre.
Mr Dippie said the search had begun for new tenants for the Red Barn site and the building could be demolished and rebuilt to suit the purposes of the new tenant.
''It's sad to see the Red Barn go, because we're quite fond of it. It's a long-standing business.
''But all the staff are staying and there will be exciting times ahead.''
The Red Barn Garden Centre would remain open ''until the end of autumn'' and a date for closure had not yet been determined, he said.