A piece of Bermuda's history will be lost forever when Gosling's Ltd.'s St. George's store closes its doors for the last time at the end of this year.

Gosling's started its business in Water Street more than 200 years ago before moving to Hamilton. It then set up in St. George's again, this time at the site of The George & Dragon on the main square, and finally relocated to its current premises in York Street.

But now the East End store will be shut due to a lack of trade, particularly from tourists, and rented out to a new business.

Charles Gosling, managing director of Gosling's, said he would be sad to leave the town after so many years, but was seeking a tenant to take over the lease next year.

"I would look to rent out the entire building," he said.

"It is currently under commercial and residential purpose use, but I would prefer to be dealing with one tenant rather than two.

"It is just a shame to be moving out of St. George's, but unfortunately we are."

He said a drop-off in business as a result of less cruise ships visiting St. George's this year and the absence of a hotel in the area for visitors to stay at since Club Med closed in the 1980s.

Gosling's ceased deliveries from its St. George's and Somerset stores and centralised its operation in Hamilton as part of its 200th anniversary two years ago, focusing solely on liquor sales at both locations, said Mr. Gosling.

"I believe we can satisfy our customers just dealing centrally from Hamilton," he said.

"We went through a major revamp of our offices and warehouse in Hamilton in 2006 as part of our 200th anniversary and part of the intent was rather than allowing St. George's and Somerset to continue as separate warehouses, we would centralise the deliveries from Hamilton and when you are reviewing financial figures it is very easy to have a grey area between what is a store and what is a delivery.

"The store in St. George's was unprofitable and it made very apparent sense that it needed to close."

Having opened in St. George's in 1806, said Mr. Gosling, Gosling's moved back to the town, first at the location of The George & Dragon, and then relocating to York Street in the 1950s.

Mr. Gosling said during that time Gosling's has become one of the mainstays of the town, with the tradition of going down to the store to hand out Christmas cards and bonuses to his staff being done for the last time this Christmas Eve.

"It is a wonderful town and really is well deserving of its historical site designation," he said.

"But until there is a hotel and more cruise ships down there, I am afraid its is going to be more of a back water.

"I remember to start with there was Frith's Liquors, Burrows, and Lightbourn, before they merged, and now you look at it there is the Somers Supermart, Churchill's, Burrows Lightbourn and ourselves, but the walk-in trade is less and less.

"I have been amazed by the lack of consumer traffic down there and there are some really good little shops in St. George's and it is a shame that they don't get that trade from the locals and tourists.

"Hopefully when this hotel (The Park Hyatt resort project) comes back any of the business from the construction will help reinvigorate the retail trade."

However the Gosling's store in Somerset was doing a good business from walk-in trade and is still a viable operation, according to Mr. Gosling.

He said only one employee will be affected by the closure of the St. George's store, but they will be accommodated within the business.

Meanwhile, Mr. Gosling said there had been some interest in renting out the premises at St. George's and he hoped it would give someone an opportunity to reinvigorate the town as a centre of trade again.

"I have someone that wants to see me at the end of the week," he said.

"In St. George's the overwhelming majority of Gosling's business is wholesale rather than retail and I am just hopeful that through the efficiencies of our operation we have been able to close one part of the operation that just does not fit in with our modern day operation.

"There may be other types of retail business that will do well in the St. George's environment and maybe us providing an opportunity for someone will help bring St. George's back to being more vibrant.

"Retailers have been struggling for a time, but last year when you have that big a drop-off in visitors it has to have a ripple effect through the community."