New Zealand Post will be closing its shop in the Rotorua CBD in less than three weeks and residents aren't happy.

The Tutanekai St PostShop will no longer be offering postal products or services from July 12.

KiwiBank announced last October it was to become a standalone bank offering more specialised services, meaning the PostShop would be leaving the shared space.

At the time New Zealand Post were looking at alternative businesses to partner with, but have now taken that option off the table.

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"At this stage we are able to serve the community's needs with the agencies we already have in town," a spokesperson said.

The box lobby will remain in its current location and customers wanting to open a PO Box could do so at Rotorua Paper Plus in the mall.

At lunchtime today there was a large queue of people waiting to send mail and many weren't happy about the changes.

Ann Somerville said it was unfortunate to the see the central PostShop closing.

"It will make it very difficult for people.

"I use this one more often because unless I go out to Ngongotaha there is nothing out that side of town."

A regular user of the PostShop, Somerville said she wouldn't be alone in missing it.

"Not everyone has got access to online shopping, or emails and all those things."

New Zealand Post said it was committed to Rotorua and providing the community with places they can use postal services, eg, buy a stamp and send a parcel.

The spokesperson said "for all their postal needs" customers could continue to visit the three other Rotorua stores.

Kathy, who chose not to give a surname, had just popped quickly from work to the post office today during her lunch break.

"It's a real shame that it's going to close.

"It's right in the heart of the city, so this is definitely the one I use most often."