Kyle believed Video Ezy Rotorua West still had a good couple of years in it before technology would force closure.
"Without a doubt there has been a decline in the number of people hiring movies over the past few years, but we still had our regulars here and they're devastated we are closing."
Kyle said residents from one of the rest homes came in weekly for movies and had expressed their dismay the store was closing.
"They've asked us what they do and, apart from the few movies available from the library or buying them from The Warehouse, there's not a lot we can suggest.
"There's also a lot of families who are not happy with the closure. Family members come in together, choose a movie together and go home and watch it – they've said it's good bonding time."
Former store manager of 12 years Dale Mudgway said Video Ezy Rotorua West opened in 2003 when "the video industry was booming".
"There's been some highs and lows but, right now, the Rotorua store is the No 1 Video Ezy store in the country and we're closing," he said.
Four staff were employed by the store in full-time and part-time roles.
"I've decided to go and retrain but I'll miss the store and all the regulars who have made the job great," Kyle said.