Rob Turner of Ben Hayward Cycles in Cambridge said the iconic bike shop will be leaving Cambridge and consolidating at its Horningsea location.
"With easy access and parking, increased display area, workshop space, safe test ride area, storage and increased coverage of experienced staff, we feel our desire for a centre of cycling excellence can be achieved better in Horningsea," said Turner.
Ben Hayward Cycles has been a fixture on Trumpington Street in Cambridge for more than a hundred years but will close before Christmas.
The shop's Horningsea branch was opened in 2009.
"Footfall in Cambridge has decreased," said Turner.
"The partial closure of Silver Street and reduction of parking bays on Trumpington Street, increased passage of coach trip visitors, the growing number of cycle shops and heavy internet competition have all diminished the trade in our town store."
He added: "Our more service-led business in Horningsea can now continue to thrive with increased resources liberated from Trumpington Street."