Market Rasen Market Place has suffered a blow after after Jacques Home Hardware relocated to another premises in the town, blaming a drop in trade.
The family-run business has moved to a smaller unit in George Street as part of a cost-cutting scheme.
The new premises - the former Curtain Creations shop - is owned by the Jacques family.
The move means the owners are no longer paying rent.
Rob Jacques said: “We didn’t want to keep paying rent (on the Market Place shop).”
Mr Jacques said the decision had been taken after a “diminishing footfall”.
He said: “We’ve got lots of customers but not as many as we used to have, I expect every single shop in this town will tell you that.”
Lauren Jacques added: “Our reason for relocating is to cut our overheads in line with the reduction in footfall in Market Rasen.
“Hopefully these changes will enable us to still provide a service to the people of Market Rasen and surrounding areas.”