CLEAVERS Mitre 10 in Prospect will close in November to make way for a new proposed Coles supermarket.
Developer Ross Harrison bought the Mitre 10 site in February and has council permission to build a supermarket.
He said he was waiting for the supermarket chain to sign a heads of agreement within the next month that would lock Coles in to develop the supermarket.
Mr Harrison said he would approach the Meander Valley Council to get approval for a range of speciality stores to be included in the supermarket complex.
In December the council approved a 3928-square-metre development in the space now occupied by Statewide Real Estate and Cleavers Mitre 10.
The supermarket would be supported by a 132-space car park.
The $10 million supermarket would be built 500 metres away from the Prospect Vale Marketplace, which holds a full-line Woolworths supermarket.
Cleavers Mitre 10 owner John Bushby said he decided to sell the site after he could not find a buyer to run the business after two years on the market.
He said the store would attempt to sell all of its stock over the next two months as well as the store's fixtures.
"Then the business will disappear," Mr Bushby said.
"When you get to 70 years old, it's time to slow down.
"And we couldn't compete with the big boys anymore."
He said it marked the end of the Cleavers name in Launceston business after 130 years.
Mr Bushby started at the Cleavers city store 47 years ago as an accountant and bought the business in 1991.
He said the store's eight staff had either found work at similar stores at Longford and Westbury, or opted to retire.