The Asda supermarket in North Lynn – deemed to be underperforming – will close on Thursday with all staff being relocated to the nearby South Wootton store.
A consultation over the future of the Asda site has decided that the store will close this week after failing to meet high expectations.
An Asda spokesman said: “It’s important to note that the underperformance is in spite of continued commitment and enthusiasm from staff, and is primarily driven by the location of the shop, which is very close to another Asda store.
“All affected colleagues have been offered roles at the nearby Asda store in South Wootton and customers will still have access to this store as well as the option of home shopping.”
The spokesman added: “The decision to explore closing the store has not been taken lightly. We’re in the business of opening stores – and will open more by the end of this year. However, the economics of retail in this location just don’t stack up.
“We are in consultation with the colleagues that work across the store and our aim is to give all affected employees jobs in other local Asda stores.”
The store, in St Nicholas’ Retail Park, was one of 147 former Netto stores nationwide that were taken over by Asda and reopened in July 2011, taking on around 27 members of staff, half of these were former Netto employees.
At the time of opening, it was reported by the store manager, Iain Robinson, that the store was exceeding sales targets set by head office.