Manager Michael Falkiner said the business' head office made the decision to close the store because it was "losing money in this location".

"It has been reasonably substantial," Mr Falkiner said of the losses. "As far as Christmas shopping goes we really didn't have a Christmas shopping period this year at all."

He said he received feedback from shoppers who said they found shopping on Liebig Street "incredibly hard" and he believed they had a preference for shopping in Warrnambool's Gateway Plaza or online.

"The main feedback I get from customers is when you come down the street and want to use those parking meters, it's so complicated to figure them out and and what zone you are in how much it costs," Mr Falkiner said.

"The other inconvenience is it's so hard to find a car park. Most people want a convenient trip where you just walk in and walk out whereas here it's made a bit hard for them.

"In Warrnambool it's easier to just go out to Gateway Plaza, it's free parking."

He said the camping shop had recorded no benefit following Warrnambool City Council completing street works on Liebig Street last year.

"We came in to this location when the road works were on, and we thought it was going to pick up after that, and it just never did pick up," Mr Falkiner said.

"It hasn't made that much of a difference to this part of Liebig Street. A lot of the other businesses I've spoken to in the immediate area are of the same opinion."

He said the store could close by September, depending on when it could clear its stock.

The closure means the store's five employees could be jobless with no opportunities to work at an Aussie Disposals nearby.

"This business itself has said unfortunately there is nothing we can do unless you move to Melbourne. So it's back to the unemployment for my guys unless they can pick up something between now and September," he said.

"It's really sad the team has been so passionate about creating a great spot. It's unfortunate we can't carry that on. All the enthusiasm we have had in the store in the last year, now we're going to lose that and lose the friendships and bonds we have all created."

Warrnambool City Council has been contacted for comment.

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