The Refilling Station is to close after three years of trading in Harrogate.
The plastic-free shop attracted a lot of goodwill when it opened because of the way it promoted sustainable shopping.
Customers bring their own containers for products to reduce packaging waste.
The business initially welcomed customers on Grove Road before moving to larger premises on Cold Bath Road.
Owner Kirsty Dodds said it had a core of loyal customers, but wider support had dwindled over the last two years.
She said the Refilling Station did well during covid when people were reluctant to go to supermarkets and it was able to source products, such as flour, which were in high demand.
“When covid was at a peak people described us as a lifesaver but unfortunately many people didn’t stick with us.
“As soon as the supermarkets caught up they went back to their old shopping habits.”
Ms Dodds said she had really enjoyed running the business but the outlook was bleak for independent shops. She said there was a misconception that supermarkets were cheaper and this, combined with their convenience, made it difficult to compete. She said:
“A lot of people have supported us in concept and on social media but not in person. It is sad but we do have staff and overheads to pay.
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Ms Dodds, who lives in Leeds, said the Refilling Station will probably close mid-September but she had yet to finalise a date. She will then focus on another business venture outside Harrogate.
She said she still thought Cold Bath Road was the ideal location for a business like hers. But she feared for the future of independent shops in Harrogate.
“I walked through the town centre recently and yes it was bustling but the shops weren’t that busy and the rents would be far more expensive than Cold Bath Road.
“I find it difficult to imagine a world where independents will survive. A lot will find the next 12 months tricky.
“The outlook is terrifying. I have family too and I feel the pinch. It’s a bleak picture if things keep going the way they are.”