The Mount Maunganui Post Shop and Kiwibank will close later this month.
The branch will close on July 28 with postal and courier services shifted to the nearby Paper Plus store because Kiwibank had ended its contract. PO Box services and a Kiwibank ATM would remain at the site.
Franchise owner Clint Wishnowski said NZ Post was re-evaluating its sites around the country and had decided it was no longer viable to continue running the Kiwibank there so ended the contract.
The shop had offered four services - Kiwibank, postal services, a bill paying service and post boxes, he said.
Mr Wishnowski said Kiwibank and the bill paying services accounted for two thirds of the business. The loss of that contract meant they had to close because operating just the Post Shop was not viable.
Mr Wishnowski and his wife Maralaine Ferguson took over the business six years ago.
"We thought after the six-year term we would start thinking about transitioning to a new owner. Looking to sell it on, we had started doing a little research in that area before this happened. We don't have anything to sell anymore," Mr Wishnowski said.
Mr Wishnowski thought about moving the business and then selling but he could only sell the franchise in it's current location, he said.
It would have cost $130,000 to move.
He had not decided what they would do next, he said.
"At the moment we're concentrating on the work we had to do here, in winding up. The end of the month is quickly coming. I'm not thinking too much beyond that yet.
Mr Wishnowski said he felt for his customers.
"Old people still like to have a paper trail, 90 per cent of our customers today used cheques to renew their car registrations."
In a written statement NZ Post said given the proximity of alternative Kiwibank branches, Kiwibank banking and bill payment services would no longer be offered at the location.
"We'll be writing to regular Kiwibank customers to advise them of this change," said Robyn Dalzell, Head of Retail Operations at New Zealand Post.
"We'll also provide support to customers wanting to discuss using internet or telephone banking."