Hennings Wine Merchants in North Street, will close its store at the end of June after being unable to renew its lease with the site's landlord.
The company, which has other shops in Petworth and Pulborough, has said it is 'extremely grateful' for the loyalty of Chichester customers during its ten years operating in the city.
In a message to customers, managing director Matthew Hennings said: "It is with great sadness and regret that I am announcing the permanent closure of our branch in North Street Chichester at the end of June.
"Unfortunately, we have been unable to come to an agreement with regards to the renewal of the lease, coupled with circumstances beyond our immediate control.
"I understand that this may come as a shock to those who have supported us over the past ten years, and we as a company are extremely grateful for the loyalty and customer shown to us; we have thoroughly enjoyed being part of the Chichester community.
"It has not been an easy decision to make, however I do believe that this is the right one for our business at this moment in time."
Customers will still be able to order wines from the company's website.
Matthew also thanked the shop's 'excellent staff' and provided an update on their future roles.
"Not only have we been blessed with a loyal customer base," he said, "but also with excellent staff. I am happy to announce that although the shop may be closing, Alex will be remaining with Hennings and is moving to HQ to join our website and content team.
"Hannah has decided to pursue her passion for natural and biodynamic wines, taking up a position as a sommelier at a restaurant in London. I would like to take this opportunity to thank Hannah for her contribution to Hennings and wish her the very best for the future."
He added: "Finally, I would like to take this opportunity to personally thank you all for all your support and customer over the years as it goes without saying we are quite simply nothing without you."