THE Spar shop in Durham Road, Eaglescliffe, is to close, leaving 11 members of staff out of work.
The closure comes in the face of fierce competition from Tesco, sparking fears among other traders in the Orchard shopping precinct that the move could have a domino effect, forcing others to close.
Chris Bacon, Spar eastern regional manager, blamed the store's closure on the arrival of the big supermarket three years ago.
"It is a shame, but on a summer's day that store casts a shadow over ours and it is killing the precinct.
"We invested more than £100,000 and expanded the store a lot over five years ago, but the lease has come up and we have decided it is no longer viable from a business point of view."
Manager Rosemary Thompson, 42, who has worked in the store for 26 years, said most of her employees had found work at the nearby Tesco store.
But she was still looking for a job and said the closure on October 11 would be a sad day for people in the locality.
"It is going to have one heck of an impact on the community, because people come and get what they need but also come in for a natter," she said.
Staff at the shop have provided a friendly and familiar service to people in Eaglescliffe and those passing through.
Regular customer Geoff Brown, 55, a retired schoolteacher of Manor Gate, Long Newton, said: "You can come in here for anything and everything and it is about having the convenience of a local store. It's a great pity."
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