Two people, one from each store, will lose their jobs when the stores close at the end of this week.
PGG Wrightson's Otago regional manager, Grant Edwards, said he felt for the staff who were losing their jobs and for the impact on the communities, but the company had to "cut its cloth" accordingly.
Farmer spending had been declining each year for the past couple of years as they became more cost-conscious, and the company had to respond to that.
"We are a community-based business, but as part of this we have got to look to the future."
PGG Wrightson still operates 14 stores in the province and Mr Edwards said technical field representatives also supplied farmers direct.
There were no plans to close other stores, he said.
Greenfield estate manager Dick Collett said there was no incentive for him as a CRT member to travel to the PGG Wrightson store in Balclutha when CRT, which also had a store in Balclutha, stocked everything a sheep and beef farmer needed.
Clydevale was a small community that relied heavily on the PGG store, Mr Collett said.
"Now, I'm going to have to be more vigilant about not running out of things.
"If I need something, for instance a pipe fitting, or toilet rolls for the shearers, or wool bale packs, it takes me five minutes. Now, I've got to go to Clutha [Balclutha]."
He had no reason to patronise PGG Wrightson when they had let Clydevale down, he said.
"It's a bit [upsetting] really, because we are losing enough things out of the district. I hope another outfit takes over the store."