The retail sales downturn has claimed a high profile victim - one of the Capital's most famous department stores.
Dickens and Jones, located on London's Regents Street, will shut its doors permanently in January next year.
The closure of the famous shop, which has been trading in the city since its humble beginnings as a small clothes store in 1803, follows years of poor trading figures for the company.
It also comes amid tough trading conditions for UK retailers, large and small alike.
Official data released on Thursday showed shop sales in the three months to May rose at the lowest rate for 40 years with several firms resorting to starting summer sales early in an effort to get customers through their doors.
House of Fraser, the owner of Dickens and Jones, said it was forced to close the store as it had failed to make a profit since landlords Legal and General increased the rent in 2003.
The company, which yesterday reported a 3.2% drop in sales across all its shops for the first 19 months of 2005, said it would try to relocate employees to other outlets. However, reports suggest that as many as 500 workers may be made redundant.
A company source told the Evening Standard newspaper: "It's an open secret that Dickens and Jones has been suffering in the last few years. Our image is too old and stuffy and we simply can't compete with many of the other big names out there."
The building vacated by Dickens and Jones has been bought by property developers, which are expected to turn it into several smaller retail outlets and residential spaces.
Dickens and Jones stores in Epsom and Richmond will remain open.