Chris Lynch Media reported staff at the store and its café next door were informed of the decision on Wednesday night.
Foodstuffs South Island general manager retail and property, Tim Donaldson, told chrislynchmedia.com: "The owner-operators of Raeward Fresh Harewood made the difficult decision to close the store after three years in business.
"After careful consideration and a review of the business, which identified changing customer needs and behaviours, the owner operators have started the process of consultation with their team members.
"All the store team will be looked after and offered the opportunity to be redeployed at other Foodstuffs South Island stores, wherever possible."
Raeward Fresh Harewood is due to remain open until its last day on Friday, September 6.
"We’d like to take this opportunity to thank all our Raeward Fresh Harewood team, suppliers and customers for their hard work and support over the years, and the owner operators for the fantastic offering they’ve provided to their community," Donaldson told chrislynchmedia.com.
