Queen Street sound and electronics retailer Surplustronics is closing down.

The retailer, which began operating in June 1987, will stop trading on December 23 following rising prices in inner Auckland city.

Increased competition, and little parking were deciding factors for the closure.

Brad Fisher, production specialist Surplustronics, said the audio and lighting retailer would continue to sell its products online.

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"A lot of the stuff we had was quite low margin and the cost of running the store got quite high, and the lack of parking - a lot of our customers were quite frustrated with that," Fisher said. "Also, just not many people go to Queen St for lighting and sound products anymore."

While Surplustronics will cease trading next month, owners Bruce Overhill and Gary Rollinson will focus on the opening of two mega-stores in Albany and Henderson, trading under the name of Sound Division.

Fisher said Sound Division would also focus on professional lighting and audio equipment.

"Sound Division is our pro lighting and sound sector, we used to do a lot of the small fiddly components but there's not much money in those anymore so we've moved on to more professional sound and lighting products for theatres and concerts," he said.

The company would like to thank its customers from its 30 years in business.

"Thanks for coming to our Queen St store over the years and we're excited to see you at our new branches," Fisher said.