This decision results in the loss of nine full-time positions, three part-time and 23 casuals, a total of 35 jobs in Merimbula. Coles says it was compelled to take this action because of the store's small size that is hampering its growth and profitability.

Supermarket staff were advised of the decision on Wednesday, June 18.

Jim Cooper, media relations manager of Coles Public Affairs praised the staff saying "We've got a very passionate and committed team in our Merimbula store, and we'll be doing everything we can to place them in other Coles and Wesfarmers businesses."

The size and location of the store together with its performance have been given as reasons for its closure.

Mr Cooper said that it was hard to be competitive operating from such a small site.

The company will continue to have a presence in Merimbula as they will retain their adjoining Liquorland store.

"While it's disappointing to have to close the store, we're very keen to remain a part of the Merimbula community in the future.

"And we hope to work with the local council and developers to find an appropriate site," said Mr Cooper.

Mr Cooper would not be drawn on the information given to the News Weekly by two sources that Coles had told the Bega Valley Shire Council that the company was not interested in the Tura Beach site.

"We are not in the position to comment on one outcome or another other than we would like to stay in town (Merimbula)," Mr Cooper said.

"Should an appropriate location become available and a new store built, our existing team members will be the first people we'd want to work in the store.

News Weekly asked two regular BI-LO shoppers their opinion on the store's closure.

Pauline Jacobson, of Pambula Beach said, "I am sad to hear that news; it will be missed especially their nice friendly staff."

Patricia Hards, Pambula, said, "I will have to go to Eden BI-LO."

"I love the friendly atmosphere in the Merimbula store, it will be missed.

Spungrow Pty Ltd principal Robert Green, the owner of the site, is upset at loosing a major national supermarket brand from his premises.

He is also upset for Merimbula because he believes this will impact on the whole of Merimbula's central business district.

"With no short or midterm likelihood of getting a larger supermarket, Coles has decided to close the loss-making BI-LO store," said Mr Green

"There will be consequences; the most obvious is going to be the loss of jobs.

"Although other retailers will fill the space, none of these will employ the same number of people as a supermarket.

"The removal of an anchor tenant will affect other retailers, some will close.

"Woolworths will benefit, its prices, checkout queues and car parking problems will increase.

"Fewer local jobs means less money spent in the town," said Mr Green.

"Property owners will find it harder to justify the redevelopment or refurbishment of their properties.

"Have a look at Market Street, what you see today is very much what you will see in 15 years time," he predicted

Mr Green said this would have ramifications for the council and Merimbula as council would not have the funding to improve Merimbula infrastructure without decent development.

"On the bright side, you will not have to travel to Tura Beach for your supermarket shopping, because Coles has again told council that a large Tura supermarket is not a viable option.

Mr Green said, "As for the BI-LO premises, they will be split into three smaller tenancies, with Liquorland continuing in its present location."