A consolidation of the business from two storeys to one meant the in-store cafe would close on October 13, putting eight staff members out of work, H&J Smith chief executive John Green said.
"They’re devastated as you’d expect, but having said that, the consultation process was conducted in a very positive manner and the staff contributed substantially to the conversation," he said.
The store, which has been in the Southland town for 113 years, was "substantially large".
"For that market, it is too big.
"It’s also quite dated and as we start looking towards updating, there is no way that we would anticipate updating the whole premises."
No other job losses were planned at this stage, he said.
"Obviously, as we get closer to working through long-term scenarios we will have to evaluate that when the time comes."
"We understand what a key role we have within the local community.
"Obviously, these decisions aren’t taken lightly.
"Invariably, you often put off making these decisions and they’re made, probably, later than they should be but at this stage our focus is on the people and just our concern for those that have been displaced."
