Mothercare's Sheffield branch is closing after more than 30 years, with disruption caused by the city centre regeneration work blamed for a sharp drop in trade.
The store in Barker's Pool, near City Hall, which is also home to the Early Learning Centre, is set to close its doors for good on Wednesday, January 25.
The news was broken to shocked staff at the store on New Year's Eve, and the future of the 20 employees working there remains uncertain.
Branch manager Yvette Kendall blamed the store's downturn on major disruption caused by widescale development in the city centre.
She said traffic and parking woes had deterred shoppers from visiting the area over the last six months.
"The redevelopment has caused a lot of hassle, because customers have found it hard to get into town and park their cars," she said.
"We know we have to go through this to get a redeveloped town centre but it has affected sales big time.
"Our customers have been shocked by the news. A lot of them first came here as young people and have come back as parents and now grandparents."
Ms Kendall said the shop had been in the city centre for 35 years and famous customers had included Olympic great Jessica Ennis-Hill, who visited when she was pregnant.
The closest branches of Mothercare will now be at Crystal Peaks and Meadowhall shopping centres.
A spokeswoman for Mothercare said the closure was part of its 'transformation plan' and the company was working to relocate staff at nearby stores where possible.
"We greatly value all our customers in the area and would like to thank them for their continued loyalty and support for Mothercare," she added.
"We are working very closely with our team and every effort will be made to relocate colleagues at nearby stores where possible.
"Whilst we regret the closure of the store, it is part of our larger transformation plan for our business to close unprofitable stores and invest in a store estate that provides our customers with a consistently enjoyable shopping experience, combining great product and service with the flexibility and convenience to shop both in store and online."