Easy Living Footwear will close its doors in mid-October as more customers shop online rather than in the brick and mortar store.
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The doors will close on October 16, leaving three staff members redundant.
Founder and chief executive officer of the company Robyn McLennan said it was a "sad decision" but expanding the online business would ensure more services could be offered to customers not just in Dubbo, but across the region.
"It reflects the fact that more of our customers buy their shoes online - a trend that COVID-19 has accelerated, but which had started before the pandemic struck," Ms McLennan said.
Easy Living Footwear has been online for 15 years. The online business was accelerated in October and then at the end of March when NSW went into lockdown.
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And it lead to an increase in customers shopping online.
Sales revenue on the website jumped 186 per cent in April and between April and August grew overall by 252 per cent.
"We opened Dubbo 20 years ago as a 'pop-up' store on two trestle tables with the brand tagline 'Footwear You Deserve'," Ms McLennan said.
"At the time, we had little idea of how successful we would become in and around the town of Dubbo.
"But to keep the store open here would be relatively costly, and would mean being able to provide a service only to those people who live in or visit the town and visit the store.
"Being able to invest online means that all of those customers can still buy from us, and so can many more people, in and around Dubbo, across NSW, and the rest of Australia."
Ms McLennan describes the business as one that caters for a typically-Australian approach to footwear, where the customer may own one pair of formal shoes but has multiple pairs of day-to-day footwear.
Easy Living Footwear also has stores in Bathurst, Tamworth and Newcastle.
Dubbo customers will still be able to purchase shoes through the website at www.easylivingfootwear.com.au.